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Jabil vs. Corning: Which Tech Manufacturing Stock Is the Better Buy?
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Key Takeaways
Jabil is gaining from AI, 5G, cloud and automation demand.
Corning's fiber optics and five-platform structure drive growth.
JBL trades at a lower P/E, but GLW offers stronger 2025 sales and EPS growth and dividends.
Jabil Inc. (JBL - Free Report) and Corning Incorporated (GLW - Free Report) are two leading players in the technology manufacturing industry.
Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solutions. The company offers electronics design, production, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
Corning is a leading innovator in the glass substrate industry. In addition to being a pioneer in Gorilla Glass technology, the company manufactures specialty materials, including various formulations for glass, glass ceramics and fluoride crystals for specific industrial and commercial applications. It also manufactures optical fibers, glass substrates for LCD and PC displays, automotive glass solutions and various laboratory equipment.
With domain-specific expertise in core areas, both Jabil and Corning are strategically positioned in the tech-adjacent manufacturing landscape and have the means to cater to the evolving demands of business enterprises. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for JBL
With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good stead.
An extensive global footprint is strengthened by a centralized procurement process. Its single Enterprise Resource Planning system aids customers with end-to-end supply-chain visibility. A worldwide connected factory network enables it to scale up production per the evolving market dynamics.
Management’s focus on improving working capital management and the integration of sophisticated AI (artificial intelligence) and ML (machine learning) capabilities to enhance the efficiency of its internal processes are major tailwinds.
Jabil’s top line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. The company is expected to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, together with excellent operational execution and skillful management of supply-chain dynamics.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers, and designers like Sanmina Corporation (SANM - Free Report) . The tense geopolitical situation between the United States and China, and the wars in Europe and the Middle East remain headwinds. Against the backdrop of this global uncertainty, low demand in some consumer-centric markets is negatively impacting its margins.
The Case for GLW
Corning is benefiting from improved demand and the commercialization of its innovations. Its capabilities are becoming increasingly vital to diverse industries. The fiber optic solutions business is likely to be the key growth driver for GLW, aided by the increasing use of mobile devices that require efficient data transfer and networking systems. Supporting this trend is the proliferation of clouds, resulting in increased storage and even virtual computing.
Since both consumers and enterprises are using networks more extensively, and the generated data is increasingly being used to train AI models, there is a solid demand for Corning’s innovative optical connectivity products for generative AI applications.
GLW’s operating structure has been reorganized to align executive management and business teams around five Market-Access Platforms to unlock opportunities for valuable synergies. These include Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display. Corning has a leadership position in each of these markets, which, along with focused marketing efforts, has proved conducive to growth. In addition, the reorganization has increased efficiency by creating the opportunity to reuse assets and capabilities developed for customers in one market ecosystem to serve customers in another.
However, end market diversification is limited within the Display and Optical segments, which account for more than half of total revenues. Since the Display Technologies and Specialty Materials segments are largely dependent on consumer spending, particularly on LCD TVs and mobile PCs, this narrows down the market. Building a significant market position in China amid a bitter Sino-U.S. trade relationship with heightened risk of the imposition of tariffs can impact its operations.
How Do Estimates Compare for JBL & GLW?
The Zacks Consensus Estimate for Jabil’s 2025 sales and EPS implies year-over-year rallies of 0.9% and 10.6%, respectively. The EPS estimates have been trending northward (up 0.4%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Corning’s 2025 sales and EPS indicates year-over-year increases of 11% and 25.5%, respectively. The EPS estimates have been trending northward (up 4.7%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of JBL & GLW
Over the past year, Jabil has skyrocketed 105.8% compared with the industry’s surge of 157.7%. Corning has gained 75.3% over the same period.
Image Source: Zacks Investment Research
Jabil looks more attractive than Corning from a valuation standpoint. Going by the price/earnings ratio, JBL shares currently trade at 18.84 forward earnings, lower than 26.4 for GLW.
Both Corning and Jabil expect sales and profits to improve in 2025, although the former’s growth expectations far exceed those of the latter. Jabil boasts a better price performance and its valuation metrics appear comparatively more attractive. However, Corning appears to have a slight edge with stable profits, better cash flow and dividends. Consequently, GLW seems to be a better investment option at the moment.
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Jabil vs. Corning: Which Tech Manufacturing Stock Is the Better Buy?
Key Takeaways
Jabil Inc. (JBL - Free Report) and Corning Incorporated (GLW - Free Report) are two leading players in the technology manufacturing industry.
Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solutions. The company offers electronics design, production, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
Corning is a leading innovator in the glass substrate industry. In addition to being a pioneer in Gorilla Glass technology, the company manufactures specialty materials, including various formulations for glass, glass ceramics and fluoride crystals for specific industrial and commercial applications. It also manufactures optical fibers, glass substrates for LCD and PC displays, automotive glass solutions and various laboratory equipment.
With domain-specific expertise in core areas, both Jabil and Corning are strategically positioned in the tech-adjacent manufacturing landscape and have the means to cater to the evolving demands of business enterprises. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for JBL
With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good stead.
An extensive global footprint is strengthened by a centralized procurement process. Its single Enterprise Resource Planning system aids customers with end-to-end supply-chain visibility. A worldwide connected factory network enables it to scale up production per the evolving market dynamics.
Management’s focus on improving working capital management and the integration of sophisticated AI (artificial intelligence) and ML (machine learning) capabilities to enhance the efficiency of its internal processes are major tailwinds.
Jabil’s top line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. The company is expected to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, together with excellent operational execution and skillful management of supply-chain dynamics.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers, and designers like Sanmina Corporation (SANM - Free Report) . The tense geopolitical situation between the United States and China, and the wars in Europe and the Middle East remain headwinds. Against the backdrop of this global uncertainty, low demand in some consumer-centric markets is negatively impacting its margins.
The Case for GLW
Corning is benefiting from improved demand and the commercialization of its innovations. Its capabilities are becoming increasingly vital to diverse industries. The fiber optic solutions business is likely to be the key growth driver for GLW, aided by the increasing use of mobile devices that require efficient data transfer and networking systems. Supporting this trend is the proliferation of clouds, resulting in increased storage and even virtual computing.
Since both consumers and enterprises are using networks more extensively, and the generated data is increasingly being used to train AI models, there is a solid demand for Corning’s innovative optical connectivity products for generative AI applications.
GLW’s operating structure has been reorganized to align executive management and business teams around five Market-Access Platforms to unlock opportunities for valuable synergies. These include Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display. Corning has a leadership position in each of these markets, which, along with focused marketing efforts, has proved conducive to growth. In addition, the reorganization has increased efficiency by creating the opportunity to reuse assets and capabilities developed for customers in one market ecosystem to serve customers in another.
However, end market diversification is limited within the Display and Optical segments, which account for more than half of total revenues. Since the Display Technologies and Specialty Materials segments are largely dependent on consumer spending, particularly on LCD TVs and mobile PCs, this narrows down the market. Building a significant market position in China amid a bitter Sino-U.S. trade relationship with heightened risk of the imposition of tariffs can impact its operations.
How Do Estimates Compare for JBL & GLW?
The Zacks Consensus Estimate for Jabil’s 2025 sales and EPS implies year-over-year rallies of 0.9% and 10.6%, respectively. The EPS estimates have been trending northward (up 0.4%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Corning’s 2025 sales and EPS indicates year-over-year increases of 11% and 25.5%, respectively. The EPS estimates have been trending northward (up 4.7%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of JBL & GLW
Over the past year, Jabil has skyrocketed 105.8% compared with the industry’s surge of 157.7%. Corning has gained 75.3% over the same period.
Image Source: Zacks Investment Research
Jabil looks more attractive than Corning from a valuation standpoint. Going by the price/earnings ratio, JBL shares currently trade at 18.84 forward earnings, lower than 26.4 for GLW.
Image Source: Zacks Investment Research
JBL or GLW: Which is a Better Pick?
Both Jabil and Corning carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Corning and Jabil expect sales and profits to improve in 2025, although the former’s growth expectations far exceed those of the latter. Jabil boasts a better price performance and its valuation metrics appear comparatively more attractive. However, Corning appears to have a slight edge with stable profits, better cash flow and dividends. Consequently, GLW seems to be a better investment option at the moment.