WallStSmart

Benchmark Electronics Inc (BHE)vsCelestica Inc. (CLS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Celestica Inc. generates 366% more annual revenue ($12.39B vs $2.66B). BHE leads profitability with a 94.0% profit margin vs 6.7%. CLS appears more attractively valued with a PEG of 1.00. CLS earns a higher WallStSmart Score of 68/100 (B-).

BHE

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 4.7Quality: 5.0

CLS

Strong Buy

68

out of 100

Grade: B-

Growth: 10.0Profit: 7.0Value: 8.7Quality: 5.0
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHESignificantly Overvalued (-1175.5%)

Margin of Safety

-1175.5%

Fair Value

$4.62

Current Price

$59.03

$54.41 premium

UndervaluedFair: $4.62Overvalued
CLSUndervalued (+11.6%)

Margin of Safety

+11.6%

Fair Value

$334.62

Current Price

$302.22

$32.40 discount

UndervaluedFair: $334.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHE2 strengths · Avg: 9.0/10
Profit MarginProfitability
94.0%10/10

Keeps 94 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

CLS4 strengths · Avg: 9.5/10
Return on EquityProfitability
40.5%10/10

Every $100 of equity generates 41 in profit

Revenue GrowthGrowth
43.6%10/10

Revenue surging 43.6% year-over-year

EPS GrowthGrowth
77.7%10/10

Earnings expanding 77.7% YoY

PEG RatioValuation
1.008/10

Growing faster than its price suggests

Areas to Watch

BHE4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.3%3/10

ROE of 2.3% — below average capital efficiency

Operating MarginProfitability
3.3%3/10

Operating margin of 3.3%

P/E RatioValuation
86.8x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-63.7%2/10

Earnings declined 63.7%

CLS3 concerns · Avg: 3.0/10
Price/BookValuation
15.7x4/10

Trading at 15.7x book value

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

P/E RatioValuation
42.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : BHE

The strongest argument for BHE centers on Profit Margin, Price/Book. Profitability is solid with margins at 94.0% and operating margin at 3.3%. PEG of 1.33 suggests the stock is reasonably priced for its growth.

Bull Case : CLS

The strongest argument for CLS centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 43.6% demonstrates continued momentum. PEG of 1.00 suggests the stock is reasonably priced for its growth.

Bear Case : BHE

The primary concerns for BHE are Return on Equity, Operating Margin, P/E Ratio. A P/E of 86.8x leaves little room for execution misses.

Bear Case : CLS

The primary concerns for CLS are Price/Book, Profit Margin, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.

Key Dynamics to Monitor

BHE profiles as a mature stock while CLS is a hypergrowth play — different risk/reward profiles.

CLS carries more volatility with a beta of 1.38 — expect wider price swings.

CLS is growing revenue faster at 43.6% — sustainability is the question.

CLS generates stronger free cash flow (158M), providing more financial flexibility.

Bottom Line

CLS scores higher overall (68/100 vs 51/100) and 43.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Benchmark Electronics Inc

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Benchmark Electronics, Inc. provides product design, engineering services, technology solutions, and advanced manufacturing services in the Americas, Asia, and Europe. The company is headquartered in Tempe, Arizona.

Celestica Inc.

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Celestica Inc. provides hardware platforms and supply chain solutions in North America, Europe, and Asia. The company is headquartered in Toronto, Canada.

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