Comparing Sanmina (SANM) and SigmaTron International (SGMA)

Sanmina (NASDAQ:SANM) and SigmaTron International (NASDAQ:SGMA) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Earnings and Valuation

This table compares Sanmina and SigmaTron International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sanmina $7.11 billion 0.24 -$90.93 million $1.84 13.82
SigmaTron International $278.13 million 0.07 -$3.24 million N/A N/A

SigmaTron International has lower revenue, but higher earnings than Sanmina.

Analyst Ratings

This is a breakdown of current ratings for Sanmina and SigmaTron International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sanmina 0 1 3 0 2.75
SigmaTron International 0 0 0 0 N/A

Sanmina presently has a consensus price target of $35.75, suggesting a potential upside of 40.58%. Given Sanmina’s higher possible upside, equities research analysts clearly believe Sanmina is more favorable than SigmaTron International.

Profitability

This table compares Sanmina and SigmaTron International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sanmina -1.28% 10.24% 3.91%
SigmaTron International -1.49% 3.73% 1.39%

Institutional and Insider Ownership

93.2% of Sanmina shares are held by institutional investors. Comparatively, 29.7% of SigmaTron International shares are held by institutional investors. 5.1% of Sanmina shares are held by company insiders. Comparatively, 8.2% of SigmaTron International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Sanmina has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, SigmaTron International has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Summary

Sanmina beats SigmaTron International on 9 of the 12 factors compared between the two stocks.

Sanmina Company Profile

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. The company offers product design and engineering solutions, including concept development, detailed design, prototyping, validation, preproduction, and manufacturing design release; manufacturing solutions of components, subassemblies, and complete systems; final system assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services. It also provides interconnect systems, such as printed circuit board fabrication, backplane, cable assemblies, and plastic injection moldings; mechanical systems comprising enclosures and precision machining; memory, radio frequency, optical, and microelectronic solutions; defense and aerospace products; storage solutions; and cloud-based manufacturing execution software. Sanmina Corporation offers its solutions primarily to original equipment manufacturers in the communications networks, computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, energy, and automotive industries. The company was formerly known as Sanmina-SCI Corporation and changed its name to Sanmina Corporation in November 2012. Sanmina Corporation was founded in 1980 and is headquartered in San Jose, California.

SigmaTron International Company Profile

SigmaTron International, Inc. operates as an independent provider of electronic manufacturing services (EMS). Its EMS services include the production of printed circuit board assemblies and completely assembled (box-build) electronic products. The company also offers automatic and manual assembly, and testing of products; material sourcing and procurement services; manufacturing and test engineering support services; design services; warehousing and distribution services; and assistance in obtaining product approval from governmental and other regulatory bodies. It primarily serves customers operating in the industrial electronics, consumer electronics, and medical/life sciences industries in the United States, Mexico, China, Vietnam, and Taiwan. The company markets its services through independent manufacturers' representative organizations. SigmaTron International, Inc. was founded in 1993 and is headquartered in Elk Grove Village, Illinois.

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