Analyzing Flex (NASDAQ:FLEX) and ClearOne (NASDAQ:CLRO)

ClearOne (NASDAQ:CLRO) and Flex (NASDAQ:FLEX) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares ClearOne and Flex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ClearOne	$11.39 million	1.15	-$26.08 million	($1.15)	-4.23
Flex	$27.91 billion	1.43	$880.00 million	$2.59	41.70

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

Risk & Volatility

ClearOne has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Flex has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Institutional and Insider Ownership

9.6% of ClearOne shares are owned by institutional investors. Comparatively, 94.3% of Flex shares are owned by institutional investors. 0.2% of ClearOne shares are owned by insiders. Comparatively, 0.6% of Flex shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares ClearOne and Flex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ClearOne	N/A	-209.91%	-118.38%
Flex	3.32%	23.15%	5.50%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ClearOne and Flex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ClearOne	1	0	0	0	1.00
Flex	0	2	9	1	2.92

Flex has a consensus target price of $114.20, suggesting a potential upside of 5.73%. Given Flex’s stronger consensus rating and higher possible upside, analysts clearly believe Flex is more favorable than ClearOne.

Summary

Flex beats ClearOne on 15 of the 15 factors compared between the two stocks.

About ClearOne

ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, and network streaming solutions for voice and visual communications in the United States and internationally. The company offers a range of audio conferencing products, including professional audio conferencing and sound-reinforcement products for use in enterprise, healthcare, education and distance learning, government, legal, and finance organizations; mid-tier premium conferencing products for smaller rooms, and small and medium businesses, which interface with video and Web conferencing systems; USB-based personal and group speakerphones that could be used with PCs, laptops, tablets, smartphones, and other portable devices; and traditional tabletop conferencing phones used in conference rooms and offices. It provides professional microphones consisting of beamforming microphones, ceiling microphones, and wireless microphones. In addition, the company offers video products, such as video conferencing and collaboration solutions; professional-grade cameras; and AV networking, which deliver the IP A/V experience by streaming time sensitive high definition audio and video, and control over TCP/IP networks. It sells its commercial products to a network of independent professional audiovisual, information technology, and telecommunications distributors, as well as systems integrators, dealers, value-added resellers, and end-users. ClearOne, Inc. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.

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.