AMP vs TE Connectivity Which Is More Lucrative?

AMP and TE Connectivity are both leading manufacturers in the electrical components industry, with a focus on providing innovative solutions for a wide range of industries such as automotive, aerospace, and telecommunications. Both companies have a strong track record of financial performance and are continuously investing in research and development to stay ahead of the competition. Investors interested in the electrical components sector may find AMP and TE Connectivity stocks as attractive options for their portfolio due to their consistent growth and stability in the market.

AMP or TE Connectivity?

When comparing AMP and TE Connectivity, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AMP and TE Connectivity.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AMP has a dividend yield of 2.98%, while TE Connectivity has a dividend yield of 1.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%. On the other hand, TE Connectivity reports a 5-year dividend growth of 6.26% year and a payout ratio of 19.22%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AMP P/E ratio at 32.03 and TE Connectivity's P/E ratio at 11.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AMP P/B ratio is 1.04 while TE Connectivity's P/B ratio is 3.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AMP has seen a 5-year revenue growth of -0.67%, while TE Connectivity's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and TE Connectivity's ROE at 31.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $153.52 for TE Connectivity. Over the past year, AMP's prices ranged from $0.58 to $0.94, with a yearly change of 62.07%. TE Connectivity's prices fluctuated between $124.95 and $159.98, with a yearly change of 28.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.