Daikin Industries (OTCMKTS:DKILY) versus Celestica (NYSE:CLS) Financial Analysis

Celestica (NYSE:CLS) and Daikin Industries (OTCMKTS:DKILY) are both large-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Earnings & Valuation

This table compares Celestica and Daikin Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celestica	$12.39 billion	2.41	$832.50 million	$10.57	22.36
Daikin Industries	$33.31 billion	1.17	$1.82 billion	$0.61	21.77

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Celestica and Daikin Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	2	21	1	2.96
Daikin Industries	0	1	0	0	2.00

Celestica presently has a consensus target price of $453.32, suggesting a potential upside of 91.83%. Given Celestica’s stronger consensus rating and higher probable upside, research analysts plainly believe Celestica is more favorable than Daikin Industries.

Profitability

This table compares Celestica and Daikin Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celestica	6.83%	33.80%	10.88%
Daikin Industries	5.24%	8.73%	4.85%

Risk and Volatility

Celestica has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, Daikin Industries has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

67.4% of Celestica shares are held by institutional investors. 1.1% of Celestica shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Celestica beats Daikin Industries on 13 of the 15 factors compared between the two stocks.

About Celestica

Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, and communication and enterprise markets. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.

About Daikin Industries

Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.