Financial Analysis: TE Connectivity (NYSE:TEL) vs. Evercel (OTCMKTS:EVRC)

TE Connectivity (NYSE:TEL) and Evercel (OTCMKTS:EVRC) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

TE Connectivity has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Evercel has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500.

Institutional and Insider Ownership

91.4% of TE Connectivity shares are owned by institutional investors. 0.6% of TE Connectivity shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TE Connectivity	$17.26 billion	3.54	$1.84 billion	$9.79	21.36
Evercel	N/A	N/A	N/A	N/A	N/A

TE Connectivity has higher revenue and earnings than Evercel.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TE Connectivity	15.54%	23.56%	11.92%
Evercel	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings for TE Connectivity and Evercel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TE Connectivity	0	5	10	2	2.82
Evercel	0	0	0	0	0.00

TE Connectivity currently has a consensus price target of $256.57, indicating a potential upside of 22.67%. Given TE Connectivity’s stronger consensus rating and higher probable upside, equities research analysts clearly believe TE Connectivity is more favorable than Evercel.

Summary

TE Connectivity beats Evercel on 11 of the 11 factors compared between the two stocks.

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.

About Evercel

Evercel, Inc., through its interest in Printronix Holding Corporation, designs and manufactures printers and related consumables for various industrial printing applications worldwide. The company provides multi-technology supply chain printing solutions for various industries, including manufacturing, transportation and logistics, retail distribution, food and beverages distribution, and pharmaceutical distribution. Its line matrix printers are used in various applications, such as labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting. The company offers its products directly to end-users, as well as through channel partners, such as dealers and distributors. Evercel, Inc. was incorporated in 1998 and is based in Miami, Florida.