Analyzing Astrotech (NASDAQ:ASTC) and Celestica (NYSE:CLS)
by Danessa Lincoln · The Markets DailyCelestica (NYSE:CLS – Get Free Report) and Astrotech (NASDAQ:ASTC – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Earnings & Valuation
This table compares Celestica and Astrotech”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Celestica | $12.39 billion | 3.05 | $832.50 million | $9.62 | 34.17 |
| Astrotech | $1.05 million | 14.86 | -$13.85 million | ($8.41) | -0.88 |
Celestica has higher revenue and earnings than Astrotech. Astrotech is trading at a lower price-to-earnings ratio than Celestica, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Celestica and Astrotech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Celestica | 7.16% | 39.96% | 11.06% |
| Astrotech | -1,397.82% | -81.85% | -65.46% |
Volatility and Risk
Celestica has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, Astrotech has a beta of 4.88, indicating that its stock price is 388% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Celestica and Astrotech, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Celestica | 0 | 1 | 21 | 1 | 3.00 |
| Astrotech | 1 | 0 | 0 | 0 | 1.00 |
Celestica currently has a consensus price target of $439.81, suggesting a potential upside of 33.80%. Given Celestica’s stronger consensus rating and higher probable upside, analysts plainly believe Celestica is more favorable than Astrotech.
Institutional and Insider Ownership
67.4% of Celestica shares are held by institutional investors. Comparatively, 24.4% of Astrotech shares are held by institutional investors. 1.1% of Celestica shares are held by company insiders. Comparatively, 16.8% of Astrotech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Celestica beats Astrotech on 12 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 Astrotech
Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.