Ferguson (FERG) Competitors

TE Connectivity (NYSE:TEL) and Ferguson (NYSE:FERG) are both large-cap wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings, dividends and media sentiment.

Which has more risk and volatility, TEL or FERG?

TE Connectivity has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Ferguson has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Is TEL or FERG a better dividend stock?

TE Connectivity pays an annual dividend of $2.84 per share and has a dividend yield of 1.7%. Ferguson pays an annual dividend of $3.32 per share and has a dividend yield of 1.5%. TE Connectivity pays out 62.4% of its earnings in the form of a dividend. Ferguson pays out 41.4% 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 has raised its dividend for 12 consecutive years. TE Connectivity is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media favor TEL or FERG?

In the previous week, TE Connectivity had 21 more articles in the media than Ferguson. MarketBeat recorded 22 mentions for TE Connectivity and 1 mentions for Ferguson. TE Connectivity's average media sentiment score of 1.33 beat Ferguson's score of 0.00 indicating that TE Connectivity is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
TE Connectivity	18 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ferguson	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has higher earnings and valuation, TEL or FERG?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TE Connectivity	$15.85B	3.12	$3.19B	$4.55	36.67
Ferguson	$29.64B	1.45	$1.74B	$8.02	27.14

Is TEL or FERG more profitable?

TE Connectivity has a net margin of 8.67% compared to Ferguson's net margin of 5.32%. Ferguson's return on equity of 34.02% beat TE Connectivity's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
TE Connectivity	8.67%	19.40%	10.45%
Ferguson	5.32%	34.02%	11.28%

Do analysts rate TEL or FERG?

TE Connectivity currently has a consensus target price of $162.50, indicating a potential downside of 2.60%. Given TE Connectivity's higher possible upside, analysts plainly believe TE Connectivity is more favorable than Ferguson.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TE Connectivity	0 Sell rating(s)	4 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.75
Ferguson	0 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	3.00

Do insiders and institutionals believe in TEL or FERG?

91.4% of TE Connectivity shares are owned by institutional investors. Comparatively, 82.0% of Ferguson shares are owned by institutional investors. 0.9% of TE Connectivity shares are owned by company insiders. Comparatively, 0.2% of Ferguson shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

TE Connectivity beats Ferguson on 13 of the 19 factors compared between the two stocks.