Comparing Avnet (AVT) and Teledyne Technologies (TDY)

Avnet (NYSE: AVT) and Teledyne Technologies (NYSE:TDY) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Avnet and Teledyne Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avnet 4 5 0 1 1.80
Teledyne Technologies 0 1 1 0 2.50

Avnet currently has a consensus target price of $41.14, indicating a potential upside of 14.44%. Teledyne Technologies has a consensus target price of $153.50, indicating a potential upside of 6.64%. Given Avnet’s higher possible upside, analysts plainly believe Avnet is more favorable than Teledyne Technologies.

Dividends

Avnet pays an annual dividend of $0.72 per share and has a dividend yield of 2.0%. Teledyne Technologies does not pay a dividend. Avnet pays out 17.7% of its earnings in the form of a dividend. Avnet has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Avnet and Teledyne Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avnet $17.44 billion 0.25 $738.16 million $4.07 8.83
Teledyne Technologies $2.32 billion 2.19 $420.20 million $5.44 26.46

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

Profitability

This table compares Avnet and Teledyne Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avnet 3.00% 8.87% 4.00%
Teledyne Technologies 8.44% 13.80% 6.82%

Risk & Volatility

Avnet has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Insider & Institutional Ownership

97.7% of Avnet shares are held by institutional investors. Comparatively, 83.2% of Teledyne Technologies shares are held by institutional investors. 1.5% of Avnet shares are held by company insiders. Comparatively, 3.3% of Teledyne Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Teledyne Technologies beats Avnet on 10 of the 18 factors compared between the two stocks.

Avnet Company Profile

Avnet, Inc. is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics Marketing (EM) segment. The EM segment markets and sells semiconductors; interconnect, passive and electromechanical devices (IP&E), and embedded products to a customer base serving various end markets. The Company creates a link in the technology supply chain that connects electronic component and computer product manufacturers and software developers with a customer base of original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), systems integrators (SIs), independent software vendors (ISVs) and value-added resellers (VARs). The Company distributes electronic components, computer products and software, as received from its suppliers or through a customized solution, and offers assembly and other services.

Teledyne Technologies Company Profile

Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets. The Company’s segments include Instrumentation, Digital Imaging, Aerospace and Defense Electronics, and Engineered Systems. Instrumentation segment provides monitoring and control instruments for marine, environmental, industrial and other applications, as well as electronic test and measurement equipment. Digital Imaging segment includes sensors, cameras and systems, within the visible, infrared, ultraviolet and X-ray spectra. Aerospace and Defense Electronics segment provides electronic components and subsystems and communications products, including defense electronics. Engineered Systems segment provides systems engineering and integration and technology development, as well as manufacturing solutions.

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