TE Connectivity vs Nexans Which Outperforms?

TE Connectivity and Nexans are two prominent players in the electrical connectivity and cable industry. TE Connectivity, based in Switzerland, is known for its innovative solutions in a wide range of industries such as automotive, industrial, and aerospace. Meanwhile, Nexans, a French company, specializes in manufacturing cables and electrical components for the energy sector. Both companies have experienced fluctuations in their stock prices due to market conditions and industry trends, making them intriguing options for investors looking to capitalize on the growing demand for connectivity solutions.

TE Connectivity or Nexans?

When comparing TE Connectivity and Nexans, 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 TE Connectivity and Nexans.

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. TE Connectivity has a dividend yield of 1.6%, while Nexans has a dividend yield of 2.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TE Connectivity reports a 5-year dividend growth of 6.26% year and a payout ratio of 19.22%. On the other hand, Nexans reports a 5-year dividend growth of 32.13% year and a payout ratio of 32.85%.

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 TE Connectivity P/E ratio at 11.88 and Nexans's P/E ratio at 8.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TE Connectivity P/B ratio is 3.80 while Nexans's P/B ratio is 1.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TE Connectivity has seen a 5-year revenue growth of 0.27%, while Nexans's is 1.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TE Connectivity's ROE at 31.28% and Nexans's ROE at 17.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $153.52 for TE Connectivity and $64.00 for Nexans. Over the past year, TE Connectivity's prices ranged from $124.95 to $159.98, with a yearly change of 28.04%. Nexans's prices fluctuated between $35.20 and $77.55, with a yearly change of 120.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.