Analyzing TE Connectivity (NYSE:TEL) and ICZOOM Group (NASDAQ:IZM)

TE Connectivity (NYSE:TEL) and ICZOOM Group (NASDAQ:IZM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Risk and Volatility

TE Connectivity has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, ICZOOM Group has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for TE Connectivity and ICZOOM Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TE Connectivity	0	6	9	1	2.69
ICZOOM Group	1	0	0	0	1.00

TE Connectivity currently has a consensus price target of $219.42, indicating a potential downside of 2.23%. Given TE Connectivity’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TE Connectivity is more favorable than ICZOOM Group.

Valuation and Earnings

This table compares TE Connectivity and ICZOOM Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TE Connectivity	$15.85 billion	4.19	$3.19 billion	$4.83	46.47
ICZOOM Group	$180.55 million	0.11	-$2.27 million	N/A	N/A

TE Connectivity has higher revenue and earnings than ICZOOM Group.

Institutional & Insider Ownership

91.4% of TE Connectivity shares are held by institutional investors. Comparatively, 34.3% of ICZOOM Group shares are held by institutional investors. 0.9% of TE Connectivity shares are held 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.

Profitability

This table compares TE Connectivity and ICZOOM Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TE Connectivity	8.78%	20.22%	10.61%
ICZOOM Group	N/A	N/A	N/A

Summary

TE Connectivity beats ICZOOM Group on 12 of the 13 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 ICZOOM Group

ICZOOM Group Inc., together with its subsidiaries, sells electronic component products to customers in Hong Kong and the People's Republic of China. The company provides semiconductor products, including various integrated circuit, discretes, passive components, and optoelectronics; and equipment, tools, and other electronic component products comprising various electromechanical, maintenance, repair and operations, and various design tools. Its products are used by small and medium-sized enterprises in the consumer electronic industry, Internet of Things, automotive electronics, and industry control segment. The company sells its products through its online platform. It also offers customs clearance, temporary warehousing, logistic, and shipping services. The company was formerly known as Horizon Business Intelligence Co., Limited and changed its name to ICZOOM Group Inc. in May 2018. ICZOOM Group Inc. was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.