FN vs PLXS

For growth investors, Fabrinet (FN) is the stronger pick with 18.

6% revenue growth year-over-year, versus 1. 8% for Plexus Corp. (PLXS). Plexus Corp. (PLXS) offers the better valuation at 42. 3x trailing P/E (34. 4x forward), making it the more compelling value choice. Analysts rate Fabrinet (FN) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Plexus Corp.

(PLXS) is the cheapest at 42. 3x versus Fabrinet at 72. 0x. On forward P/E, Plexus Corp. is actually cheaper at 34. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Fabrinet wins at 1. 94x versus Plexus Corp. 's 3. 53x — a reasonable growth-adjusted valuation.

Over the past 5 years, Fabrinet (FN) delivered a total return of +669.

1%, compared to +186. 9% for Plexus Corp. (PLXS). Over 10 years, the gap is even starker: FN returned +1806% versus PLXS's +543. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Plexus Corp.

(PLXS) is the lower-risk stock at 1. 65β versus Fabrinet's 2. 74β — meaning FN is approximately 66% more volatile than PLXS relative to the S&P 500. On balance sheet safety, Fabrinet (FN) carries a lower debt/equity ratio of 0% versus 12% for Plexus Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Fabrinet (FN) is pulling ahead at 18.

6% versus 1. 8% for Plexus Corp. (PLXS). On earnings-per-share growth, the picture is similar: Plexus Corp. grew EPS 56. 1% year-over-year, compared to 13. 2% for Fabrinet. Over a 3-year CAGR, FN leads at 14. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Fabrinet (FN) is the more profitable company, earning 9.

7% net margin versus 4. 3% for Plexus Corp. — meaning it keeps 9. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FN leads at 9. 5% versus 5. 0% for PLXS. At the gross margin level — before operating expenses — FN leads at 12. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Fabrinet (FN) is the more undervalued stock at a PEG of 1. 94x versus Plexus Corp. 's 3. 53x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Plexus Corp. (PLXS) trades at 34. 4x forward P/E versus 48. 5x for Fabrinet — 14. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PLXS: -5. 2% to $251. 25.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Fabrinet (FN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1806% 10Y return).

Plexus Corp. (PLXS) carries a higher beta of 1. 65 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (FN: +1806%, PLXS: +543. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: FN is a mid-cap high-growth stock; PLXS is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.