Analyzing Microwave Filter (OTCMKTS:MFCO) and TE Connectivity (NYSE:TEL)

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

Earnings & Valuation

This table compares TE Connectivity and Microwave Filter”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TE Connectivity	$15.85 billion	4.00	$3.19 billion	$4.83	44.42
Microwave Filter	N/A	N/A	N/A	N/A	N/A

TE Connectivity has higher revenue and earnings than Microwave Filter.

Analyst Ratings

This is a summary of current ratings and recommmendations for TE Connectivity and Microwave Filter, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TE Connectivity	0	6	8	2	2.75
Microwave Filter	0	0	0	0	0.00

TE Connectivity presently has a consensus price target of $219.92, suggesting a potential upside of 2.50%. Given TE Connectivity’s stronger consensus rating and higher probable upside, equities research analysts clearly believe TE Connectivity is more favorable than Microwave Filter.

Volatility & Risk

TE Connectivity has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Microwave Filter has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TE Connectivity	8.78%	20.22%	10.61%
Microwave Filter	N/A	N/A	N/A

Institutional & Insider Ownership

91.4% of TE Connectivity shares are owned by institutional investors. 0.9% of TE Connectivity shares are owned by company insiders. Comparatively, 6.9% of Microwave Filter shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

TE Connectivity beats Microwave Filter on 10 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 Microwave Filter

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States. It manufactures RF filters and related components for eliminating interference and facilitating signal processing for cable television, broadcast, commercial and military communications, avionics, radar, navigation, and defense markets. The company also designs waveguide, stripline/microstrip, transmission line, miniature/subminiature, and lumped constant filters. Its configurations include bandpass, highpass, lowpass, bandstop, multiplexers, tunable notch, tunable bandpass, high power filters, amplitude equalized, delay equalized, and filter networks. The company serves 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial, and aerospace and defense electronics markets. Microwave Filter Company, Inc. was incorporated in 1967 and is based in East Syracuse, New York.