TEL vs. FERG, WSO.B, USFD, PFGC, CNM, SITE, INGM, AVT, GMS, and REZI
Should you be buying TE Connectivity stock or one of its competitors? The main competitors of TE Connectivity include Ferguson (FERG), Watsco (WSO.B), US Foods (USFD), Performance Food Group (PFGC), Core & Main (CNM), SiteOne Landscape Supply (SITE), Ingram Micro (INGM), Avnet (AVT), GMS (GMS), and Resideo Technologies (REZI). These companies are all part of the "wholesale" industry.
TE Connectivity vs.
Ferguson (NASDAQ:FERG) and TE Connectivity (NYSE:TEL) are both large-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, media sentiment, valuation, earnings, community ranking, analyst recommendations, profitability and dividends.
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 insiders. Comparatively, 0.9% of TE Connectivity shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
TE Connectivity has lower revenue, but higher earnings 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.
Ferguson currently has a consensus target price of $200.67, indicating a potential upside of 22.90%. TE Connectivity has a consensus target price of $167.00, indicating a potential upside of 13.61%. Given Ferguson's stronger consensus rating and higher possible upside, equities research analysts plainly believe Ferguson is more favorable than TE Connectivity.
Ferguson has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
In the previous week, Ferguson and Ferguson both had 37 articles in the media. TE Connectivity's average media sentiment score of 1.51 beat Ferguson's score of 0.46 indicating that TE Connectivity is being referred to more favorably in the news media.
TE Connectivity has a net margin of 12.10% compared to Ferguson's net margin of 5.68%. Ferguson's return on equity of 34.63% beat TE Connectivity's return on equity.
TE Connectivity received 586 more outperform votes than Ferguson when rated by MarketBeat users. Likewise, 69.49% of users gave TE Connectivity an outperform vote while only 47.95% of users gave Ferguson an outperform vote.
Ferguson pays an annual dividend of $3.32 per share and has a dividend yield of 2.0%. TE Connectivity pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Ferguson pays out 40.8% of its earnings in the form of a dividend. TE Connectivity pays out 45.4% 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 increased its dividend for 12 consecutive years. Ferguson is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
TE Connectivity beats Ferguson on 11 of the 20 factors compared between the two stocks.
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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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This page (NYSE:TEL) was last updated on 3/28/2025 by MarketBeat.com Staff