Reviewing TE Connectivity (NYSE:TEL) & Nortech Systems (NASDAQ:NSYS)

Nortech Systems (NASDAQ:NSYSGet Free Report) and TE Connectivity (NYSE:TELGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings & Valuation

This table compares Nortech Systems and TE Connectivity”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nortech Systems $118.37 million 0.30 -$250,000.00 ($0.10) -129.20
TE Connectivity $17.26 billion 3.56 $1.84 billion $6.93 30.19

TE Connectivity has higher revenue and earnings than Nortech Systems. Nortech Systems is trading at a lower price-to-earnings ratio than TE Connectivity, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Nortech Systems and TE Connectivity, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nortech Systems 1 0 0 0 1.00
TE Connectivity 0 5 13 0 2.72

TE Connectivity has a consensus price target of $249.47, indicating a potential upside of 19.23%. Given TE Connectivity’s stronger consensus rating and higher possible upside, analysts plainly believe TE Connectivity is more favorable than Nortech Systems.

Insider and Institutional Ownership

3.0% of Nortech Systems shares are held by institutional investors. Comparatively, 91.4% of TE Connectivity shares are held by institutional investors. 11.0% of Nortech Systems shares are held by company insiders. Comparatively, 0.6% of TE Connectivity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Nortech Systems and TE Connectivity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nortech Systems -0.21% -0.76% -0.34%
TE Connectivity 11.41% 22.72% 11.47%

Risk and Volatility

Nortech Systems has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Summary

TE Connectivity beats Nortech Systems on 13 of the 14 factors compared between the two stocks.

About Nortech Systems

(Get Free Report)

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.

About TE Connectivity

(Get Free Report)

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, and application tooling products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and interventional medical components, relays, heat shrink tubing, and wires and cables for industrial equipment, aerospace, defense, marine, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. The company sells its products to approximately 140 countries primarily through direct sales to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was founded in 1941 and is based in Schaffhausen, Switzerland.

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