FERG vs. TEL, USFD, CNM, PFGC, AVT, GMS, DSGR, WKC, ASPN, and GLP
Should you be buying Ferguson stock or one of its competitors? The main competitors of Ferguson include TE Connectivity (TEL), US Foods (USFD), Core & Main (CNM), Performance Food Group (PFGC), Avnet (AVT), GMS (GMS), Distribution Solutions Group (DSGR), World Kinect (WKC), Aspen Aerogels (ASPN), and Global Partners (GLP). These companies are all part of the "wholesale" industry.
Ferguson (NASDAQ:FERG) and TE Connectivity (NYSE:TEL) are both large-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their community ranking, institutional ownership, analyst recommendations, risk, profitability, media sentiment, dividends, valuation and earnings.
Ferguson presently has a consensus price target of $230.00, suggesting a potential upside of 5.27%. TE Connectivity has a consensus price target of $158.45, suggesting a potential upside of 1.33%. Given Ferguson's stronger consensus rating and higher probable upside, research analysts clearly believe Ferguson is more favorable than TE Connectivity.
TE Connectivity has lower revenue, but higher earnings than Ferguson. TE Connectivity is trading at a lower price-to-earnings ratio than Ferguson, indicating that it is currently the more affordable of the two stocks.
TE Connectivity has a net margin of 21.94% compared to Ferguson's net margin of 6.33%. Ferguson's return on equity of 36.89% beat TE Connectivity's return on equity.
Ferguson has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
TE Connectivity received 585 more outperform votes than Ferguson when rated by MarketBeat users. Likewise, 69.34% of users gave TE Connectivity an outperform vote while only 40.00% of users gave Ferguson an outperform vote.
Ferguson pays an annual dividend of $3.16 per share and has a dividend yield of 1.4%. TE Connectivity pays an annual dividend of $2.60 per share and has a dividend yield of 1.7%. Ferguson pays out 34.5% of its earnings in the form of a dividend. TE Connectivity pays out 23.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TE Connectivity is clearly the better dividend stock, given its higher yield and lower payout ratio.
82.0% of Ferguson shares are owned by institutional investors. Comparatively, 91.4% of TE Connectivity shares are owned by institutional investors. 0.2% of Ferguson shares are owned by company insiders. Comparatively, 0.9% of TE Connectivity shares are owned 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.
In the previous week, TE Connectivity had 21 more articles in the media than Ferguson. MarketBeat recorded 45 mentions for TE Connectivity and 24 mentions for Ferguson. TE Connectivity's average media sentiment score of 0.61 beat Ferguson's score of 0.45 indicating that TE Connectivity is being referred to more favorably in the news media.
Summary
TE Connectivity beats Ferguson on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FERG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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