TE Connectivity (NYSE:TEL – Get Free Report) and Vicor (NASDAQ:VICR – 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 valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares TE Connectivity and Vicor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TE Connectivity | 11.41% | 22.72% | 11.47% |
| Vicor | 26.19% | 18.73% | 16.61% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for TE Connectivity and Vicor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TE Connectivity | 0 | 5 | 12 | 1 | 2.78 |
| Vicor | 0 | 1 | 3 | 1 | 3.00 |
Earnings and Valuation
This table compares TE Connectivity and Vicor”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TE Connectivity | $18.10 billion | 4.00 | $1.84 billion | $6.93 | 35.55 |
| Vicor | $452.70 million | 21.85 | $118.56 million | $2.61 | 83.54 |
TE Connectivity has higher revenue and earnings than Vicor. TE Connectivity is trading at a lower price-to-earnings ratio than Vicor, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.4% of TE Connectivity shares are owned by institutional investors. Comparatively, 47.5% of Vicor shares are owned by institutional investors. 0.6% of TE Connectivity shares are owned by insiders. Comparatively, 31.3% of Vicor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
TE Connectivity has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Vicor has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.
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 Vicor
Vicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components provide AC line rectification, input filtering, power factor correction, and transient protection; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also design, sells, and service custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications and networking infrastructure and vehicles, and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.
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