CLS vs SANM: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: SANM is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. CLS and SANM share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined CLS and SANM exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Celestica is a Toronto-based electronics manufacturing services (EMS) and supply-chain company that designs, builds, and tests hardware for other companies. It reports in two segments. Connectivity & Cloud Solutions (CCS) is the larger and faster-growing one, serving data-center and communications customers with networking switches, servers, storage, and increasingly custom AI/ML compute hardware; in Q1 2026 CCS was about ~80% of total revenue and grew roughly ~76% year over year, with hyperscaler customers making up the majority of that segment. Advanced Technology Solutions (ATS) is the diversified segment covering aerospace and defense, industrial, HealthTech, and capital equipment. The company makes money on the volume and complexity of the hardware it manufactures and on higher-value design and joint-design-manufacturing (JDM) work, where margins are structurally better than commodity contract assembly.

Full CLS guide

Sanmina Corporation, founded in Silicon Valley in 1980 and headquartered in San Jose, California, is a Fortune 500 global provider of integrated manufacturing solutions, components, and repair, logistics and after-market services. It serves original equipment manufacturers (OEMs) across industrial and energy, medical, defense and aerospace, automotive, communications networks, and cloud and AI infrastructure, running two businesses: Integrated Manufacturing Solutions and Components, Products and Services. It employs roughly 35,000 people and serves customers from around 20 countries.

Full SANM guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• CLS drivers: Hyperscaler-driven CCS growth; AI networking and compute content.
• SANM drivers: AI and cloud infrastructure ramp; AMD partnership and preferred-manufacturer status.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Customer concentration is the headline risk: as of Q1 2026 three customers each represented at least 10% of revenue (roughly 35%, 15%, and 15%), and the top ten customers made up about ~78% of revenue, so losing or being de-prioritized by a single hyperscaler would matter a lot. For SANM, sanmina operates on thin EMS margins (non-GAAP operating margin around 6%), so small execution errors or pricing pressure can meaningfully affect profits.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick CLS if you believe its drivers more; SANM if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the CLS and SANM guides.

CLS. These figures are tied to the June 2026 reporting picture and Celestica's Q1 2026 results announced in late April 2026. The company has repeatedly beaten and raised guidance on AI-driven demand, and its valuation multiple has expanded well above its historical EMS range to reflect those growth expectations. A premium multiple means the stock is more sensitive to any disappointment in growth or margins than a traditional contract manufacturer would be.

SANM. Revenue and earnings stepped up sharply after the ZT Systems acquisition closed in late 2025, roughly doubling quarterly sales. The stock trades at a large premium to its roughly 15x ten-year average P/E, reflecting AI-driven enthusiasm, so much of the future growth appears to be priced in.

Headline figures (approximate, June 2026): CLS shows q1 2026 revenue ~$4.05B (up ~53% YoY), ccs segment growth ~76% YoY in Q1 2026 (~80% of revenue), 2026 revenue guidance ~$19B (raised from ~$17B), adjusted operating margin ~8.0% Q1 2026; ~8.1% 2026 guide; SANM shows revenue (fy2026 guidance) ~$13.7B to $14.3B, q2 fy2026 revenue ~$4.0B (up ~102% YoY), fy2025 revenue ~$8.1B, non-gaap eps (fy2026 guidance) ~$10.75 to $11.35.

CLS and SANM are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined CLS and SANM exposure against your real portfolio. It is not an investment adviser.