Head-To-Head Review: Celestica (CLS) & Its Rivals

Celestica (NYSE:CLS) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it contrast to its peers? We will compare Celestica to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Risk and Volatility

Celestica has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, Celestica’s peers have a beta of -0.30, meaning that their average share price is 130% less volatile than the S&P 500.

Valuation & Earnings

This table compares Celestica and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Celestica	$12.39 billion	$832.50 million	22.36
Celestica Competitors	$4.06 billion	$172.92 million	5.53

Celestica has higher revenue and earnings than its peers. Celestica is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Celestica and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celestica	6.83%	33.80%	10.88%
Celestica Competitors	-158.11%	-25.88%	-6.86%

Analyst Ratings

This is a summary of current ratings and price targets for Celestica and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	2	21	1	2.96
Celestica Competitors	2047	7601	10426	660	2.47

Celestica currently has a consensus price target of $453.32, suggesting a potential upside of 91.83%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 34.80%. Given Celestica’s stronger consensus rating and higher possible upside, equities analysts plainly believe Celestica is more favorable than its peers.

Insider & Institutional Ownership

67.4% of Celestica shares are owned by institutional investors. Comparatively, 43.3% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 1.1% of Celestica shares are owned by company insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Celestica beats its peers on 12 of the 13 factors compared.

Celestica Company Profile

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.