Analyzing Sanmina (SANM) and Advanced Energy Industries (AEIS)
Sanmina (NASDAQ: SANM) and Advanced Energy Industries (NASDAQ:AEIS) are both mid-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.
Valuation and Earnings
This table compares Sanmina and Advanced Energy Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sanmina||$6.87 billion||0.34||$138.83 million||$1.78||18.40|
|Advanced Energy Industries||$483.70 million||5.65||$127.45 million||$5.12||13.46|
Sanmina has higher revenue and earnings than Advanced Energy Industries. Advanced Energy Industries is trading at a lower price-to-earnings ratio than Sanmina, indicating that it is currently the more affordable of the two stocks.
This table compares Sanmina and Advanced Energy Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Energy Industries||33.76%||35.56%||25.61%|
Volatility & Risk
Sanmina has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Advanced Energy Industries has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Sanmina and Advanced Energy Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Energy Industries||0||3||2||0||2.40|
Sanmina presently has a consensus price target of $44.33, suggesting a potential upside of 35.37%. Advanced Energy Industries has a consensus price target of $78.75, suggesting a potential upside of 14.23%. Given Sanmina’s higher possible upside, equities research analysts plainly believe Sanmina is more favorable than Advanced Energy Industries.
Institutional and Insider Ownership
92.5% of Sanmina shares are held by institutional investors. Comparatively, 94.3% of Advanced Energy Industries shares are held by institutional investors. 5.0% of Sanmina shares are held by company insiders. Comparatively, 1.1% of Advanced Energy Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Advanced Energy Industries beats Sanmina on 7 of the 12 factors compared between the two stocks.
Sanmina Company Profile
Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.
Advanced Energy Industries Company Profile
Advanced Energy Industries, Inc. is a provider of engineered, precision power conversion, measurement and control solutions. The Company is engaged in designing, manufacturing, selling and supporting its power conversion products and solutions that transform power into various forms in various applications ranging from manufacturing and industrial processes to instrumentation, and test and measurement. It also provides repair and maintenance services for all of its products. Its process power systems include direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, matching networks, remote plasma sources for reactive gas applications and RF instrumentation. These power conversion systems refine, modify and control the raw electrical power from a utility and convert it into power that may be customized and is predictable and repeatable. Its power control modules and thermal instrumentation products are used in the semiconductor industry.
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