Financial Contrast: Spreadtrum Communications (SPRD) and Plexus (PLXS)

Spreadtrum Communications (NASDAQ: SPRD) and Plexus (NASDAQ:PLXS) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Spreadtrum Communications and Plexus, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spreadtrum Communications 0 0 0 0 N/A
Plexus 0 7 1 0 2.13

Plexus has a consensus target price of $57.86, suggesting a potential downside of 5.91%.

Valuation and Earnings

This table compares Spreadtrum Communications and Plexus’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spreadtrum Communications N/A N/A N/A $2.13 N/A
Plexus $2.53 billion 0.82 $112.06 million $3.24 18.98

Plexus has higher revenue and earnings than Spreadtrum Communications. Spreadtrum Communications is trading at a lower price-to-earnings ratio than Plexus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Spreadtrum Communications and Plexus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spreadtrum Communications N/A N/A N/A
Plexus 4.43% 11.48% 6.05%

Institutional and Insider Ownership

94.2% of Plexus shares are held by institutional investors. 4.3% of Plexus shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Plexus beats Spreadtrum Communications on 8 of the 8 factors compared between the two stocks.

Spreadtrum Communications Company Profile

Spreadtrum Communications, Inc. is a fabless semiconductor company that designs, develops and markets markets mobile chipset platforms for smartphones, feature phones and other consumer electronics products that support second generation (2G), third generation (3G) and fourth generation (4G) wireless communications standards. It offers a portfolio of integrated baseband processor solutions that support a range of wireless communications standards, including global system for mobile communications (GSM), general packet radio service (GPRS), enhanced data rates for global evolution (EDGE), time division synchronous code division multiple access (TD-SCDMA), wideband code division multiple access (WCDMA), high speed packet access + (HSPA+) and long term evolution (LTE), as well as an array of multimedia capabilities. In April 2012, Spreadtrum Shanghai acquired all the equity interests held by the nominee shareholders of Spreadtrum Beijing.

Plexus Company Profile

Plexus Corp. (Plexus) and its subsidiaries are engaged in the electronic manufacturing services (EMS) industry. The Company delivers end-to-end solutions for customers in the Americas (AMER), Europe, Middle East, and Africa (EMEA) and Asia-Pacific (APAC) regions. The Company’s segments are AMER, APAC and EMEA. The Company’s customer-focused solutions model integrates product conceptualization, design, commercialization, manufacturing, fulfillment and sustaining solutions. The Company delivers solutions to its customers through its product realization value stream. The Company provides a range of aftermarket services, including complex repair, refurbishment and product support for products it manufactures. The Company provides customer service to approximately 140 branded product companies in the healthcare/life sciences, industrial/commercial, networking/communications and defense/security/aerospace market sectors.

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