Linear Technology (NASDAQ: LLTC) and Celestica (NYSE:CLS) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Risk and Volatility
Linear Technology has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Celestica has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
This is a breakdown of recent ratings for Linear Technology and Celestica, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Linear Technology presently has a consensus target price of $63.00, indicating a potential downside of 3.08%. Celestica has a consensus target price of $13.36, indicating a potential upside of 19.95%. Given Celestica’s stronger consensus rating and higher possible upside, analysts clearly believe Celestica is more favorable than Linear Technology.
Valuation and Earnings
This table compares Linear Technology and Celestica’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Celestica||$6.11 billion||0.23||$105.00 million||$0.73||15.26|
Celestica has higher revenue and earnings than Linear Technology. Celestica is trading at a lower price-to-earnings ratio than Linear Technology, indicating that it is currently the more affordable of the two stocks.
This table compares Linear Technology and Celestica’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Linear Technology pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. Celestica does not pay a dividend. Linear Technology pays out 64.7% of its earnings in the form of a dividend.
Institutional & Insider Ownership
90.2% of Linear Technology shares are owned by institutional investors. Comparatively, 72.7% of Celestica shares are owned by institutional investors. 1.2% of Linear Technology shares are owned by insiders. Comparatively, 1.0% of Celestica shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Linear Technology beats Celestica on 9 of the 14 factors compared between the two stocks.
Linear Technology Company Profile
Linear Technology Corporation is engaged in designing, manufacturing and marketing a line of analog integrated circuits. The Company produces power management, data conversion, signal conditioning, radio frequency (RF) and interface integrated circuits (ICs) and wireless sensor network products, among others. The Company’s principal product categories include amplifiers, high speed amplifiers, voltage regulators, voltage references, interfaces, data converters, battery stack monitors, silicon oscillators and timer blox, phase locked loop (PLL) synthesizers and clock distribution, SmartMesh embedded wireless sensor network, radio and microwave frequency circuits, Power Over Ethernet (PoE) Controllers, and Other. The Company’s products provide a bridge between analog world and the digital electronics in communications, networking, industrial, transportation, computer, medical, instrumentation, consumer, and military and aerospace systems.
Celestica Company Profile
Celestica Inc. is a provider of supply chain solutions. The Company operates in electronics manufacturing services business segment. The Company offers a range of services to its customers, including design and development, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services. Its products and services serve a range of applications, including servers; storage systems; optical equipment; aerospace and defense electronics; healthcare products and applications; semiconductor equipment, and a range of industrial and alternative energy products, including solar panels and inverters. It designs, manufactures and tests solar panels for the residential, commercial and utility scale markets. It uses technologies in the assembly and testing of its products.
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