Comparing CUI Global (CUI) and TE Connectivity (TEL)

CUI Global (NASDAQ: CUI) and TE Connectivity (NYSE:TEL) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Earnings & Valuation

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This table compares CUI Global and TE Connectivity’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CUI Global $83.28 million 0.92 -$12.58 million ($0.35) -7.66
TE Connectivity $13.11 billion 2.69 $1.68 billion $4.83 20.76

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

Risk and Volatility

CUI Global has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Dividends

TE Connectivity pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. CUI Global does not pay a dividend. TE Connectivity pays out 33.1% of its earnings in the form of a dividend. TE Connectivity has increased its dividend for 7 consecutive years.

Institutional & Insider Ownership

52.6% of CUI Global shares are owned by institutional investors. Comparatively, 91.7% of TE Connectivity shares are owned by institutional investors. 5.2% of CUI Global shares are owned by company insiders. Comparatively, 0.7% of TE Connectivity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for CUI Global and TE Connectivity, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CUI Global 0 0 3 0 3.00
TE Connectivity 0 3 10 0 2.77

CUI Global currently has a consensus target price of $25.33, suggesting a potential upside of 845.27%. TE Connectivity has a consensus target price of $136.17, suggesting a potential upside of 35.81%. Given CUI Global’s stronger consensus rating and higher probable upside, equities research analysts plainly believe CUI Global is more favorable than TE Connectivity.

Profitability

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

Net Margins Return on Equity Return on Assets
CUI Global -15.12% -16.70% -9.79%
TE Connectivity 9.12% 19.49% 9.71%

Summary

TE Connectivity beats CUI Global on 12 of the 16 factors compared between the two stocks.

About CUI Global

CUI Global, Inc., through its subsidiaries, engages in the acquisition, development, and commercialization of power and electromechanical components worldwide. The company operates through two segments, Power and Electro-Mechanical, and Energy. The Power and Electromechanical segment offers components, including connectors, speakers, buzzers, test and measurement devices, and control solutions comprising encoders and sensors; and power solutions, such as Novum and ICE Block that addresses power and related accessories to consumer electronics, medical, and defense industries. The Energy segment provides natural gas infrastructure and advanced technology, including metering, odorization, remote telemetry units, and a range of personalized gas engineering solutions to the gas utilities, power generation, emissions, manufacturing, and automotive industries. CUI Global, Inc. was founded in 1998 and is based in Tualatin, Oregon.

About TE Connectivity

TE Connectivity Ltd. engages in the design and manufacture of connectivity and sensors solutions. It operates through the following segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment offers products that are used in the automotive, commercial transportation, and sensors markets. The Industrial Solutions segment provides products that connect and distribute power, data, and signal. The Communications Solutions segment supplies electronic components for the data and devices and appliances markets. The company was founded in 2000 and is headquartered in Schaffhausen, Switzerland.

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