Analyzing TE Connectivity (NYSE:TEL) & CPS Technologies (NASDAQ:CPSH)

CPS Technologies (NASDAQ:CPSH) and TE Connectivity (NYSE:TEL) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Insider and Institutional Ownership

11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 91.4% of TE Connectivity shares are held by institutional investors. 13.2% of CPS Technologies shares are held by insiders. Comparatively, 0.6% of TE Connectivity shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CPS Technologies and TE Connectivity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPS Technologies	0	2	1	0	2.33
TE Connectivity	0	5	10	2	2.82

CPS Technologies presently has a consensus price target of $6.00, suggesting a potential upside of 18.58%. TE Connectivity has a consensus price target of $256.57, suggesting a potential upside of 24.40%. Given TE Connectivity’s stronger consensus rating and higher probable upside, analysts plainly believe TE Connectivity is more favorable than CPS Technologies.

Earnings and Valuation

This table compares CPS Technologies and TE Connectivity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPS Technologies	$32.60 million	2.80	$420,000.00	$0.03	168.67
TE Connectivity	$17.26 billion	3.49	$1.84 billion	$9.79	21.07

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CPS Technologies	1.29%	2.43%	1.90%
TE Connectivity	15.54%	23.56%	11.92%

Risk & Volatility

CPS Technologies has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Summary

TE Connectivity beats CPS Technologies on 12 of the 15 factors compared between the two stocks.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.

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.