American Superconductor (NASDAQ:AMSC – Get Free Report) and TE Connectivity (NYSE:TEL – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility and Risk
American Superconductor has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for American Superconductor and TE Connectivity, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Superconductor | 0 | 1 | 1 | 0 | 2.50 |
| TE Connectivity | 0 | 6 | 8 | 2 | 2.75 |
Institutional and Insider Ownership
52.3% of American Superconductor shares are held by institutional investors. Comparatively, 91.4% of TE Connectivity shares are held by institutional investors. 4.8% of American Superconductor shares are held by insiders. Comparatively, 0.9% of TE Connectivity shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares American Superconductor and TE Connectivity”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Superconductor | $222.82 million | 12.16 | $6.03 million | $0.39 | 153.90 |
| TE Connectivity | $15.85 billion | 4.16 | $3.19 billion | $4.83 | 46.24 |
TE Connectivity has higher revenue and earnings than American Superconductor. TE Connectivity is trading at a lower price-to-earnings ratio than American Superconductor, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American Superconductor and TE Connectivity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Superconductor | 6.00% | 9.35% | 6.20% |
| TE Connectivity | 8.78% | 20.22% | 10.61% |
Summary
TE Connectivity beats American Superconductor on 11 of the 15 factors compared between the two stocks.
About American Superconductor
American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. The company operates through Grid and Wind segments. The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market. This segment also offers ship protection systems, which reduce a naval ship’s magnetic signature; and ON board power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It also supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers. This segment’s design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher. American Superconductor Corporation was incorporated in 1987 and is headquartered in Ayer, Massachusetts.
About TE Connectivity
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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