TE Connectivity (TEL) & The Competition Head-To-Head Survey

TE Connectivity (NYSE:TEL) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its rivals? We will compare TE Connectivity to similar businesses based on the strength of its analyst recommendations, profitability, risk, institutional ownership, earnings, dividends and valuation.

Insider and Institutional Ownership

91.4% of TE Connectivity shares are held by institutional investors. Comparatively, 43.3% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 0.6% of TE Connectivity shares are held by company insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for TE Connectivity and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TE Connectivity	1	4	11	0	2.62
TE Connectivity Competitors	2047	7589	10395	654	2.47

TE Connectivity currently has a consensus target price of $255.21, suggesting a potential upside of 19.89%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 36.16%. Given TE Connectivity’s rivals higher possible upside, analysts plainly believe TE Connectivity has less favorable growth aspects than its rivals.

Profitability

This table compares TE Connectivity and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TE Connectivity	16.36%	25.55%	13.03%
TE Connectivity Competitors	-158.15%	-25.72%	-6.85%

Earnings and Valuation

This table compares TE Connectivity and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TE Connectivity	$19.89 billion	$1.84 billion	19.23
TE Connectivity Competitors	$115.46 billion	$167.45 million	5.61

TE Connectivity’s rivals have higher revenue, but lower earnings than TE Connectivity. TE Connectivity is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

TE Connectivity has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, TE Connectivity’s rivals have a beta of -0.20, indicating that their average stock price is 120% less volatile than the S&P 500.

Dividends

TE Connectivity pays an annual dividend of $3.12 per share and has a dividend yield of 1.5%. TE Connectivity pays out 28.2% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 70.6% of their earnings in the form of a dividend. TE Connectivity has raised its dividend for 12 consecutive years.

Summary

TE Connectivity beats its rivals on 10 of the 15 factors compared.

TE Connectivity Company Profile

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.