Flex (NASDAQ:FLEX – Get Rating) and Tempo Automation (NASDAQ:TMPO – Get Rating) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Risk and Volatility
Flex has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Tempo Automation has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Flex and Tempo Automation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flex | 0 | 0 | 2 | 0 | 3.00 |
| Tempo Automation | 0 | 1 | 2 | 0 | 2.67 |
Profitability
This table compares Flex and Tempo Automation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flex | 2.61% | 18.83% | 4.20% |
| Tempo Automation | N/A | N/A | -428.46% |
Insider and Institutional Ownership
94.7% of Flex shares are owned by institutional investors. Comparatively, 36.6% of Tempo Automation shares are owned by institutional investors. 0.5% of Flex shares are owned by insiders. Comparatively, 34.2% of Tempo Automation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Flex and Tempo Automation’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flex | $30.35 billion | 0.39 | $793.00 million | $1.71 | 15.54 |
| Tempo Automation | $10.93 million | 1.09 | -$144.85 million | N/A | N/A |
Flex has higher revenue and earnings than Tempo Automation.
Summary
Flex beats Tempo Automation on 8 of the 11 factors compared between the two stocks.
About Flex
Flex Ltd. provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices. Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise automotive including next generation mobility, autonomous, connectivity, electrification, and smart technologies; health solutions, such as medical devices, medical equipment, and drug delivery; and industrial solutions including capital equipment, industrial devices, and renewables and grid edge. The Nextracker segment offers solar tracker and software solutions, which are used in utility-scale and ground-mounted distributed generation solar projects. In addition, it provides a broad array of services including design and engineering, component services, rapid prototyping, fulfillment, and circular economy solutions. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Singapore.
About Tempo Automation
Tempo Automation Holdings, Inc. manufactures electronic products. The company designs and assembles printed circuit boards. It serves automotive, aviation and defense, consumer electronics, design firms, energy, industrial technology, medical device, semiconductor, and space industries. The company was founded in 2013 and is based in San Francisco, California.
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