WallStSmart

Flex Ltd (FLEX)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Flex Ltd generates 128% more annual revenue ($26.83B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 3.2%. WDC appears more attractively valued with a PEG of 0.87. WDC earns a higher WallStSmart Score of 79/100 (B+).

FLEX

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.14

WDC

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 9.5Value: 6.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FLEXUndervalued (+43.3%)

Margin of Safety

+43.3%

Fair Value

$114.26

Current Price

$96.45

$17.81 discount

UndervaluedFair: $114.26Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FLEX1 strengths · Avg: 8.0/10
PEG RatioValuation
0.948/10

Growing faster than its price suggests

WDC6 strengths · Avg: 9.8/10
Return on EquityProfitability
85.9%10/10

Every $100 of equity generates 86 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
477.2%10/10

Earnings expanding 477.2% YoY

Market CapQuality
$152.47B9/10

Large-cap with strong market position

Areas to Watch

FLEX4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Debt/EquityHealth
1.093/10

Elevated debt levels

P/E RatioValuation
41.1x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-4.5%2/10

Earnings declined 4.5%

WDC2 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
21.2x2/10

Trading at 21.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : FLEX

The strongest argument for FLEX centers on PEG Ratio. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bull Case : WDC

The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

Bear Case : FLEX

The primary concerns for FLEX are Profit Margin, Debt/Equity, P/E Ratio. A P/E of 41.1x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Price/Book.

Key Dynamics to Monitor

FLEX profiles as a value stock while WDC is a growth play — different risk/reward profiles.

WDC carries more volatility with a beta of 2.16 — expect wider price swings.

WDC is growing revenue faster at 45.5% — sustainability is the question.

WDC generates stronger free cash flow (978M), providing more financial flexibility.

Bottom Line

WDC scores higher overall (79/100 vs 52/100), backed by strong 55.3% margins and 45.5% revenue growth. FLEX offers better value entry with a 43.3% margin of safety. 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.

Flex Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.

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Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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