Flex (NASDAQ:FLEX) & Focus Universal (NASDAQ:FCUV) Critical Comparison

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Flex and Focus Universal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	3	8	1	2.83
Focus Universal	1	0	0	0	1.00

Flex currently has a consensus price target of $114.20, suggesting a potential upside of 1.03%. Given Flex’s stronger consensus rating and higher possible upside, equities analysts clearly believe Flex is more favorable than Focus Universal.

Volatility and Risk

Flex has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Focus Universal has a beta of -0.65, suggesting that its stock price is 165% less volatile than the S&P 500.

Institutional and Insider Ownership

94.3% of Flex shares are owned by institutional investors. Comparatively, 4.4% of Focus Universal shares are owned by institutional investors. 0.6% of Flex shares are owned by insiders. Comparatively, 22.8% of Focus Universal shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flex	3.32%	23.15%	5.50%
Focus Universal	-637.15%	-151.07%	-51.03%

Earnings & Valuation

This table compares Flex and Focus Universal”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$27.91 billion	1.50	$880.00 million	$2.59	43.65
Focus Universal	$250,000.00	13.45	-$4.79 million	($15.01)	-0.32

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

Summary

Flex beats Focus Universal on 13 of the 15 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 Focus Universal

Focus Universal Inc. develops and manufactures smart instrumentation platform and device. It offers Ubiquitor, a wireless sensor device with a universal sensor node and gateway system that uses a computer or mobile device as the output display module that displays the readings of various sensor nodes. The company's universal smart instrumentation platform (USIP) utilizes mobile devices or computers to communicate with smart devices, such as sensors, instruments, probes, and controllers to monitor and control any functions. It also offers digital sensors and horticultural sensors, as well as universal smart controller (USC), a controller device. Further, the company provides filter and handheld meter products, including fan speed adjuster, carbon filter, and HEPA filtration systems, as well as digital light and quantum par meters through distributors. Additionally, it provides integration of houses, apartment, commercial complex, and office spaces with audio, visual, and control systems to integrate devices in the low voltage field, as well as partial equipment upgrade and installation services. The company was incorporated in 2012 and is based in Ontario, California.