Head-To-Head Comparison: TE Connectivity (NYSE:TEL) & TTM Technologies (NASDAQ:TTMI)

TTM Technologies (NASDAQ:TTMI) and TE Connectivity (NYSE:TEL) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TTM Technologies	6.29%	13.70%	6.29%
TE Connectivity	15.54%	23.56%	11.92%

Earnings and Valuation

This table compares TTM Technologies and TE Connectivity”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TTM Technologies	$2.91 billion	6.24	$177.45 million	$1.85	94.35
TE Connectivity	$17.26 billion	3.42	$1.84 billion	$9.79	20.68

TE Connectivity has higher revenue and earnings than TTM Technologies. TE Connectivity is trading at a lower price-to-earnings ratio than TTM Technologies, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

95.8% of TTM Technologies shares are held by institutional investors. Comparatively, 91.4% of TE Connectivity shares are held by institutional investors. 1.3% of TTM Technologies shares are held by company insiders. Comparatively, 0.6% of TE Connectivity shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

TTM Technologies has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for TTM Technologies and TE Connectivity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TTM Technologies	0	1	5	0	2.83
TE Connectivity	0	5	10	2	2.82

TTM Technologies presently has a consensus target price of $149.50, suggesting a potential downside of 14.35%. TE Connectivity has a consensus target price of $256.57, suggesting a potential upside of 26.72%. Given TE Connectivity’s higher probable upside, analysts clearly believe TE Connectivity is more favorable than TTM Technologies.

Summary

TE Connectivity beats TTM Technologies on 9 of the 15 factors compared between the two stocks.

About TTM Technologies

TTM Technologies, Inc., together with its subsidiaries, manufactures and sells mission systems, radio frequency (RF) components and RF microwave/microelectronic assemblies, and printed circuit boards (PCB) worldwide. The company operates in two segments, PCB and RF&S Components. It offers range of engineered systems, RF and microwave assemblies, HDI PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration, IC substrates, passive RF components, advanced ceramic RF components, hi-reliability multi-chip modules, beamforming and switching networks, PCB products, RF components, and backplane/custom assembly solutions, including conventional PCBs. It also provides advanced ceramic RF components including standard and etched thick-film ceramic substrates; and hi-reliability multi-chip modules. In addition, the company offers radar systems including maritime surveillance and weather avoidance radar systems, surveillance products, communication systems, RF assembly and test services, and passive RF components. Further, the company provides custom designed application specific integrated circuits, high density interconnect, IC substrates, flexible and rigid flex PCBs, and custom assemblies including backplane and mid-plane assemblies, flexible and rigid-flex assemblies, and RF assemblies, as well as conventional PCBs, such as single-sided, double-sided, and multi-layer boards. Additionally, it offers quick turnaround services, which includes prototype production and ramp-to-volume production, and thermal management. The company serves original equipment manufacturers and electronic manufacturing services providers, original design manufacturers, distributors, and government agencies; and aerospace and defense, data center computing, automotive, medical, industrial, and instrumentation, as well as networking applications. TTM Technologies, Inc. was incorporated in 1978 and is headquartered in Santa Ana, California.

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.