Contrasting Sparton (SPA) & Jabil (JBL)

Sparton (NYSE: SPA) and Jabil (NYSE:JBL) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Sparton and Jabil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sparton -2.53% 13.31% 4.65%
Jabil 0.60% 14.31% 3.01%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Sparton and Jabil, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sparton 0 0 0 0 N/A
Jabil 2 4 6 0 2.33

Jabil has a consensus target price of $32.78, indicating a potential upside of 18.72%. Given Jabil’s higher probable upside, analysts plainly believe Jabil is more favorable than Sparton.

Insider and Institutional Ownership

64.9% of Sparton shares are owned by institutional investors. Comparatively, 99.4% of Jabil shares are owned by institutional investors. 5.0% of Sparton shares are owned by insiders. Comparatively, 2.6% of Jabil shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Sparton has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Jabil has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sparton and Jabil’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sparton $397.56 million 0.44 $1.31 million N/A N/A
Jabil $19.06 billion 0.25 $129.09 million $1.85 14.92

Jabil has higher revenue and earnings than Sparton.

Dividends

Jabil pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Sparton does not pay a dividend. Jabil pays out 17.3% of its earnings in the form of a dividend.

Summary

Jabil beats Sparton on 8 of the 14 factors compared between the two stocks.

Sparton Company Profile

Sparton Corporation, together with its subsidiaries, provides design, development, and manufacturing services for electromechanical devices; and engineered products in electromechanical value stream worldwide. The company operates through two segments, Manufacturing & Design Services (MDS), and Engineered Components & Products (ECP). The MDS segment is involved in the contract design, manufacture, and aftermarket repair and refurbishment of printed circuit card assemblies, sub-assemblies, full product assemblies, and cable/wire harnesses, as well as development of embedded software and software quality assurance services in connection with medical devices and diagnostic equipment. This segment serves original equipment manufacturers and emerging technology customers serving the medical and biotechnology, military and aerospace, and industrial and commercial markets. The ECP segment designs, develops, and produces proprietary products for domestic and foreign defense, and commercial applications. It offers anti-submarine warfare devices for the U.S. Navy and foreign governments; rugged flat panel display systems for military panel PC workstations, air traffic control and industrial, and commercial marine applications; and high performance industrial grade computer systems and peripherals, as well as develops and markets commercial products for underwater acoustics and microelectromechanical based inertial measurement. This segment also performs an engineering development function for the United States military and prime defense contractors. Sparton Corporation was founded in 1900 and is headquartered in Schaumburg, Illinois.

Jabil Company Profile

Jabil Inc. provides electronic manufacturing services and solutions worldwide. The company operates through two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. It offers electronics design, production, and product management services. The company provides electronic circuit design services, such as application-specific integrated circuit design, firmware development and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also specializes in three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as offers various industrial design, advance mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, and PCBA design validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services that include product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company offers systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves automotive and transportation, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, healthcare, industrial and energy, mobility, networking and telecommunications, packaging, point of sale, and printing industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in St. Petersburg, Florida.

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