TEL vs. FERG, USFD, CNM, AVT, GMS, ASPN, WKC, DSGR, GLP, and AMRK
Should you be buying TE Connectivity stock or one of its competitors? The main competitors of TE Connectivity include Ferguson (FERG), US Foods (USFD), Core & Main (CNM), Avnet (AVT), GMS (GMS), Aspen Aerogels (ASPN), World Kinect (WKC), Distribution Solutions Group (DSGR), Global Partners (GLP), and A-Mark Precious Metals (AMRK). These companies are all part of the "wholesale" industry.
TE Connectivity (NYSE:TEL) and Ferguson (NASDAQ:FERG) are both large-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, media sentiment, analyst recommendations, community ranking, profitability, risk, valuation, institutional ownership and dividends.
TE Connectivity has higher earnings, but lower revenue 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.
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, large money managers and endowments believe a stock will outperform the market over the long term.
TE Connectivity pays an annual dividend of $2.60 per share and has a dividend yield of 1.7%. Ferguson pays an annual dividend of $3.16 per share and has a dividend yield of 1.4%. TE Connectivity pays out 23.8% of its earnings in the form of a dividend. Ferguson pays out 34.5% 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.
TE Connectivity currently has a consensus target price of $158.45, indicating a potential upside of 2.53%. Ferguson has a consensus target price of $230.00, indicating a potential upside of 7.91%. Given Ferguson's stronger consensus rating and higher possible upside, analysts plainly believe Ferguson is more favorable than TE Connectivity.
TE Connectivity has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Ferguson has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
TE Connectivity received 584 more outperform votes than Ferguson when rated by MarketBeat users. Likewise, 69.31% of users gave TE Connectivity an outperform vote while only 40.00% of users gave Ferguson an outperform vote.
In the previous week, TE Connectivity had 27 more articles in the media than Ferguson. MarketBeat recorded 47 mentions for TE Connectivity and 20 mentions for Ferguson. TE Connectivity's average media sentiment score of 0.60 beat Ferguson's score of 0.45 indicating that TE Connectivity is being referred to more favorably in the 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 TEL 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 NYSE 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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