Contrasting TT Electronics (OTCMKTS:TTGPF) and TE Connectivity (NYSE:TEL)

TE Connectivity (NYSE:TEL) and TT Electronics (OTCMKTS:TTGPF) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TE Connectivity and TT Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TE Connectivity	0	7	9	1	2.65
TT Electronics	0	0	0	1	4.00

TE Connectivity presently has a consensus price target of $254.93, suggesting a potential upside of 28.66%. Given TE Connectivity’s higher possible upside, equities research analysts clearly believe TE Connectivity is more favorable than TT Electronics.

Earnings & Valuation

This table compares TE Connectivity and TT Electronics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TE Connectivity	$18.70 billion	3.09	$1.84 billion	$9.79	20.24
TT Electronics	$634.73 million	0.43	-$66.73 million	N/A	N/A

TE Connectivity has higher revenue and earnings than TT Electronics.

Risk & Volatility

TE Connectivity has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, TT Electronics has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares TE Connectivity and TT Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TE Connectivity	15.54%	23.56%	11.92%
TT Electronics	N/A	N/A	N/A

Institutional & Insider Ownership

91.4% of TE Connectivity shares are held by institutional investors. 0.6% of TE Connectivity shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

TE Connectivity beats TT Electronics on 11 of the 12 factors compared between the two stocks.

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.

About TT Electronics

TT Electronics plc provides design-led advanced electronics technologies for performance critical applications in the healthcare, aerospace and defense, and automation and electrification markets in the United Kingdom, Rest of Europe, North America, Asia, and internationally. The company operates through three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity segment designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data to optimize electronic systems. The Global Manufacturing Solutions segment provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides engineering services, including designing testing solutions and value-engineering. The Sensors and Specialist Components segment develops standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers applications. It offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, Ferranti, IRC, Optek Technology, Precision, Power Partners, PowerPax, Roxspur Measurement and Control, Semelab, Stontronics, Torotel, and Welwyn brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. The company was incorporated in 1906 and is headquartered in Woking, the United Kingdom.