In today’s dynamic technology landscape, Jabil Inc. and Ouster, Inc. stand out as key players in the hardware and equipment sector, each with distinct innovation strategies. Jabil excels in manufacturing services across diverse industries, while Ouster focuses on cutting-edge digital lidar sensors for 3D vision applications. This article will delve into their market positions and growth prospects to help you decide which company might be the better investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between Jabil Inc. and Ouster, Inc. by providing an overview of these two companies and their main differences.
Jabil Inc. Overview
Jabil Inc. operates globally in the hardware, equipment, and parts industry, providing manufacturing services and solutions. It focuses on electronics manufacturing services and diversified manufacturing services, including design, production, product management, and consulting services. Jabil serves multiple sectors, such as 5G, automotive, healthcare, and industrial markets, positioning itself as a comprehensive contract manufacturer with a broad industry reach.
Ouster, Inc. Overview
Ouster, Inc. specializes in designing and manufacturing high-resolution digital lidar sensors and related software to enable 3D vision for machinery, vehicles, robots, and infrastructure. Operating in the technology sector, Ouster offers a focused product portfolio including scanning and solid-state flash sensors. The company is relatively smaller and younger, with a strong emphasis on innovation in lidar technology based in San Francisco.
Key similarities and differences
Both Jabil and Ouster operate in the technology sector within the hardware, equipment, and parts industry. However, Jabil’s business model is centered on contract manufacturing and design services across diverse industries, whereas Ouster concentrates on developing and selling specialized lidar sensors and software. Jabil has a significantly larger scale with 138K employees and a market cap of about $25.7B, while Ouster is a niche player with 292 employees and a market cap near $1.6B, reflecting differing scopes and operational focuses.
Income Statement Comparison
The following table compares the most recent fiscal year income statement metrics of Jabil Inc. and Ouster, Inc. to provide a clear view of their financial performance.
| Metric | Jabil Inc. (JBL) | Ouster, Inc. (OUST) |
|---|---|---|
| Market Cap | 25.7B | 1.6B |
| Revenue | 29.8B | 111.1M |
| EBITDA | 1.81B | -79.9M |
| EBIT | 1.14B | -94.7M |
| Net Income | 657M | -97.0M |
| EPS | 6.00 | -2.08 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Jabil Inc.
Jabil Inc. showed relatively stable revenue around 29.8B USD in 2025, with a slight growth of 3.18% compared to the previous year. However, net income declined significantly to 657M USD, reflecting a 54.13% drop in net margin. Margins such as gross and EBIT were neutral but overall profitability weakened, with EPS also down 47%, signaling margin pressures in the latest fiscal year.
Ouster, Inc.
Ouster, Inc. experienced strong revenue growth, reaching 111M USD in 2024, up 33.41% year-over-year. Despite negative net income of -97M USD, its margins improved markedly, with gross margin at 36.42% and net margin growth of 80.56%. EBIT loss narrowed and EPS loss improved by nearly 80%, indicating operational progress despite ongoing losses in this growth phase.
Which one has the stronger fundamentals?
Ouster, Inc. demonstrates more favorable income statement fundamentals, with substantial growth in revenue, margins, and EPS over the period. Conversely, Jabil Inc. faces margin contraction and declining net income despite stable revenue. Ouster’s trajectory reflects improving operational efficiency, whereas Jabil’s recent year shows significant profit erosion, suggesting stronger fundamentals for Ouster based on income statement trends.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Jabil Inc. (JBL) and Ouster, Inc. (OUST) based on their most recent fiscal year data.
| Ratios | Jabil Inc. (2025) | Ouster, Inc. (2024) |
|---|---|---|
| ROE | 43.4% | -53.6% |
| ROIC | 16.1% | -50.8% |
| P/E | 34.1 | -5.87 |
| P/B | 14.8 | 3.15 |
| Current Ratio | 1.00 | 2.80 |
| Quick Ratio | 0.66 | 2.59 |
| D/E | 2.22 | 0.11 |
| Debt-to-Assets | 18.2% | 7.33% |
| Interest Coverage | 4.84 | -57.1 |
| Asset Turnover | 1.61 | 0.40 |
| Fixed Asset Turnover | 9.01 | 4.54 |
| Payout ratio | 5.5% | 0% |
| Dividend yield | 0.16% | 0% |
Interpretation of the Ratios
Jabil Inc.
Jabil Inc. shows a mixed ratio profile with strong return on equity (43.42%) and return on invested capital (16.06%), indicating efficient capital use. However, weak net margin (2.2%), high price-to-book (14.82), and quick ratio below 1 suggest liquidity and valuation concerns. The company pays dividends with a low yield of 0.16%, reflecting a cautious shareholder return strategy amid some financial weaknesses.
Ouster, Inc.
Ouster, Inc. displays generally unfavorable profitability ratios, including a deeply negative net margin (-87.35%) and return on equity (-53.64%), highlighting ongoing losses. Its liquidity ratios are strong, with a current ratio of 2.8 and low debt-to-equity of 0.11, typical for a growth-focused firm. The absence of dividends aligns with its reinvestment and development phase, prioritizing R&D over shareholder payouts.
Which one has the best ratios?
Jabil Inc. presents a slightly unfavorable overall ratio evaluation but outperforms Ouster, Inc., which faces significant profitability and coverage challenges. Jabil’s stronger returns and dividend payments contrast with Ouster’s negative earnings and high volatility, making Jabil’s financial ratios comparatively more favorable in this analysis.
Strategic Positioning
This section compares the strategic positioning of Jabil Inc. and Ouster, Inc., including their market position, key segments, and exposure to technological disruption:
Jabil Inc.
- Large market cap (~25.7B), mature player in hardware industry, facing moderate competitive pressure.
- Diverse revenue streams from Electronics Manufacturing Services and Diversified Manufacturing Services across multiple industries.
- Moderate exposure to technological disruption through design and manufacturing innovation in electronics.
Ouster, Inc.
- Smaller market cap (~1.6B), newer entrant with higher beta, facing high volatility.
- Focused on high-resolution digital lidar sensors and software for 3D vision applications.
- High exposure due to reliance on cutting-edge lidar sensor technology innovation.
Jabil Inc. vs Ouster, Inc. Positioning
Jabil’s strategy is diversified across many manufacturing segments, providing stability and broad exposure. Ouster focuses narrowly on lidar technology, which offers growth potential but adds concentration risk and sensitivity to technological changes.
Which has the best competitive advantage?
Jabil demonstrates a very favorable moat with growing ROIC and value creation, indicating durable competitive advantage. Ouster has a slightly unfavorable moat, shedding value despite improving profitability, reflecting a less established competitive position.
Stock Comparison
The past year showed marked bullish trends for Jabil Inc. and Ouster, Inc., with significant price gains and contrasting recent momentum, reflecting differing trading dynamics and market interest.
Trend Analysis
Jabil Inc. (JBL) exhibited a strong bullish trend over the past 12 months with a 71.89% price increase, showing acceleration and high volatility, reaching a peak at 240.39 and a low of 99.62. Recent months confirm sustained positive momentum with an 8.57% gain.
Ouster, Inc. (OUST) posted an impressive 395.34% price increase over the last year, indicating a bullish trend despite deceleration and relatively low volatility. However, recent performance weakened with a 20.26% decline and a slight negative slope.
Comparing both stocks, Ouster delivered the highest annual market performance, outperforming Jabil substantially, although its recent trend suggests caution due to emerging downward pressure.
Target Prices
The current analyst consensus for target prices suggests positive upside potential for both Jabil Inc. and Ouster, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Jabil Inc. | 283 | 244 | 260.5 |
| Ouster, Inc. | 39 | 33 | 36.67 |
Analysts expect Jabil’s stock to trade moderately above its current price of 240.3 USD, indicating room for growth. Ouster’s consensus target is significantly higher than its current 26.6 USD price, suggesting strong bullish sentiment.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Jabil Inc. and Ouster, Inc.:
Rating Comparison
JBL Rating
- Rated B- indicating a very favorable overall assessment.
- Discounted Cash Flow Score of 3, reflecting a moderate valuation outlook.
- Return on Equity Score of 5, showing very favorable efficiency in generating profit from equity.
- Return on Assets Score of 3, suggesting moderate effectiveness in asset use.
- Debt To Equity Score of 1, reflecting very unfavorable financial risk.
- Overall Score of 3, representing a moderate financial standing.
OUST Rating
- Rated C- indicating a very unfavorable overall assessment.
- Discounted Cash Flow Score of 1, indicating a very unfavorable valuation.
- Return on Equity Score of 1, showing very unfavorable efficiency.
- Return on Assets Score of 1, indicating very unfavorable asset utilization.
- Debt To Equity Score of 3, indicating moderate financial risk.
- Overall Score of 1, depicting a very unfavorable financial standing.
Which one is the best rated?
Based on the provided data, Jabil Inc. is better rated with a B- rating and higher scores in ROE, ROA, and overall financial standing. Ouster, Inc. has lower scores and a C- rating, indicating a weaker financial profile.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
JBL Scores
- Altman Z-Score: 3.09, indicating a safe zone and low bankruptcy risk.
- Piotroski Score: 8, classified as very strong financial health.
OUST Scores
- Altman Z-Score: 3.66, indicating a safe zone and very low bankruptcy risk.
- Piotroski Score: 4, classified as average financial health.
Which company has the best scores?
Based on the provided data, OUST has a higher Altman Z-Score, placing it slightly safer from bankruptcy risk, while JBL scores significantly higher on the Piotroski scale, indicating stronger financial health.
Grades Comparison
Here is the comparison of recent grades and ratings for Jabil Inc. and Ouster, Inc.:
Jabil Inc. Grades
The following table summarizes recent grades issued by reputable financial institutions for Jabil Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Overweight | 2025-12-18 |
| UBS | Maintain | Neutral | 2025-12-18 |
| Barclays | Maintain | Overweight | 2025-12-18 |
| B of A Securities | Maintain | Buy | 2025-12-10 |
| Barclays | Maintain | Overweight | 2025-09-26 |
| B of A Securities | Maintain | Buy | 2025-09-26 |
| JP Morgan | Maintain | Overweight | 2025-07-17 |
| B of A Securities | Maintain | Buy | 2025-06-20 |
| UBS | Maintain | Neutral | 2025-06-18 |
| JP Morgan | Maintain | Overweight | 2025-06-18 |
Jabil Inc.’s grades predominantly show a consistent “Overweight” and “Buy” stance from major banks, with some neutral ratings, indicating a stable positive outlook.
Ouster, Inc. Grades
The following table presents recent grades from recognized financial firms for Ouster, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | Upgrade | Overweight | 2025-11-07 |
| Cantor Fitzgerald | Upgrade | Overweight | 2025-11-06 |
| WestPark Capital | Maintain | Buy | 2025-11-05 |
| Rosenblatt | Maintain | Buy | 2025-11-05 |
| WestPark Capital | Upgrade | Buy | 2025-08-13 |
| Oppenheimer | Maintain | Outperform | 2025-07-16 |
| WestPark Capital | Downgrade | Hold | 2025-06-12 |
| WestPark Capital | Upgrade | Buy | 2025-05-09 |
| Rosenblatt | Maintain | Buy | 2025-03-21 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-21 |
Ouster, Inc. shows a more dynamic rating trend, with multiple upgrades leading to “Buy” and “Overweight” ratings, and a single downgrade, reflecting mixed but generally improving sentiment.
Which company has the best grades?
Ouster, Inc. has received more upgrades and a consensus “Buy,” suggesting a more optimistic outlook compared to Jabil Inc.’s stable “Hold” consensus. This difference may influence investor preference based on risk tolerance and growth expectations.
Strengths and Weaknesses
Below is a comparative table summarizing the key strengths and weaknesses of Jabil Inc. (JBL) and Ouster, Inc. (OUST) based on their latest financial and operational data.
| Criterion | Jabil Inc. (JBL) | Ouster, Inc. (OUST) |
|---|---|---|
| Diversification | Highly diversified with multiple segments: Connected Living & Digital Commerce ($5.6B), Intelligent Infrastructure ($12.3B), Regulated Industries ($11.9B) | Limited product line with $111M revenue from a single reportable segment |
| Profitability | Positive ROIC (16.06%) and ROE (43.42%), slight net margin (2.2%), but overall slightly unfavorable ratio profile | Negative profitability metrics: ROIC -50.8%, ROE -53.6%, net margin -87.4% |
| Innovation | Stable innovation implied by growing ROIC trend (+25.4%) and strong asset turnover (9.01 fixed asset turnover) | Increasing ROIC trend (+65.2%) indicates potential growth, but still value destroying |
| Global presence | Strong global operations with significant revenue spread across industries and regions | Smaller scale, less diversified global footprint |
| Market Share | Large-scale player in electronics manufacturing services with $36B+ revenue in 2025 | Emerging player with $111M revenue, niche market position |
Key takeaway: Jabil Inc. demonstrates a robust and diversified business with solid profitability and a durable competitive advantage, making it a more stable investment choice. Ouster, while showing signs of improving profitability, remains a high-risk option due to its current value destruction and limited scale.
Risk Analysis
Below is a comparative overview of key risk factors for Jabil Inc. (JBL) and Ouster, Inc. (OUST) based on the most recent data:
| Metric | Jabil Inc. (JBL) | Ouster, Inc. (OUST) |
|---|---|---|
| Market Risk | Beta 1.25 (moderate) | Beta 2.94 (high volatility) |
| Debt level | Debt-to-Equity 2.22 (high) | Debt-to-Equity 0.11 (low) |
| Regulatory Risk | Moderate (global manufacturing regulations) | Moderate (tech and sensor regulations) |
| Operational Risk | Large workforce (138K), complex global supply chain | Smaller scale (292 employees), tech development risks |
| Environmental Risk | Moderate (manufacturing footprint) | Lower (sensor production) |
| Geopolitical Risk | Exposure due to global operations | Limited, mostly U.S.-based |
Jabil Inc. faces the most impactful risks from its high leverage and exposure to global supply chain disruptions, while Ouster’s main risk lies in its high market volatility and negative profitability metrics reflecting operational challenges. Investors should weigh Jabil’s financial stability against Ouster’s growth potential with caution.
Which Stock to Choose?
Jabil Inc. (JBL) shows modest revenue growth of 3.18% in 2025 with a slightly unfavorable income statement but favorable profitability ratios, including a strong ROE of 43.42%. Its debt level is relatively high with a debt-to-equity ratio of 2.22, yet the company enjoys a very favorable rating and demonstrates a durable competitive advantage through a growing ROIC above WACC.
Ouster, Inc. (OUST) exhibits strong revenue growth of 33.41% in 2024 and a favorable income statement overall, despite negative profitability metrics and net losses. The company maintains low debt levels, reflected in a debt-to-equity ratio of 0.11, but its financial ratios are mostly unfavorable. Its rating is also very favorable, supported by a safe zone Altman Z-Score but with a slightly unfavorable moat due to value destruction.
For investors prioritizing stability, profitability, and a proven competitive moat, Jabil Inc. might appear more favorable given its solid ROE and value-creating capital efficiency. Conversely, risk-tolerant investors seeking high growth potential and exposure to a rapidly expanding business could find Ouster’s strong income growth and improving profitability metrics more appealing, despite current losses.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Jabil Inc. and Ouster, Inc. to enhance your investment decisions:
