Critical Contrast: Keysight Technologies (NYSE:KEYS) versus Celestica (NYSE:CLS)

Keysight Technologies (NYSE:KEYS) and Celestica (NYSE:CLS) are both large-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Keysight Technologies and Celestica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keysight Technologies	19.08%	24.34%	13.10%
Celestica	6.83%	33.80%	10.88%

Institutional and Insider Ownership

84.6% of Keysight Technologies shares are held by institutional investors. Comparatively, 67.4% of Celestica shares are held by institutional investors. 0.4% of Keysight Technologies shares are held by company insiders. Comparatively, 1.1% of Celestica shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Keysight Technologies and Celestica”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keysight Technologies	$5.38 billion	9.68	$850.00 million	$7.28	42.00
Celestica	$12.39 billion	2.47	$832.50 million	$10.57	22.93

Keysight Technologies has higher earnings, but lower revenue than Celestica. Celestica is trading at a lower price-to-earnings ratio than Keysight Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Keysight Technologies has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Celestica has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Keysight Technologies and Celestica, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keysight Technologies	0	3	11	0	2.79
Celestica	0	1	21	2	3.04

Keysight Technologies currently has a consensus target price of $401.42, suggesting a potential upside of 31.28%. Celestica has a consensus target price of $445.14, suggesting a potential upside of 83.66%. Given Celestica’s stronger consensus rating and higher probable upside, analysts clearly believe Celestica is more favorable than Keysight Technologies.

Summary

Celestica beats Keysight Technologies on 9 of the 15 factors compared between the two stocks.

About Keysight Technologies

Keysight Technologies, Inc. develops electronic design, test and measurement solutions used to design, validate and monitor electronic systems. Its offerings include instruments, software and services that help customers evaluate the performance and reliability of products and networks. The company serves industries including communications, aerospace and defense, automotive, semiconductor and general electronics. Its solutions support work ranging from chip and device development to testing wireless networks, data centers and connected systems.

About Celestica

Celestica Inc. is a global provider of design, manufacturing, and supply chain services for companies across technology and industrial markets. Its work spans product development, engineering, manufacturing, testing, and ongoing product support. The company’s offerings include hardware and infrastructure used in cloud computing and data centers, communications networks, aerospace and defense, industrial equipment, and health technology. It also provides supply chain management and other services to support products throughout their lifecycle.