TE Connectivity (NYSE:TEL – Get Free Report) and ClearOne (NASDAQ:CLRO – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Profitability
This table compares TE Connectivity and ClearOne’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TE Connectivity | 16.36% | 25.55% | 13.03% |
| ClearOne | N/A | -209.91% | -118.38% |
Institutional and Insider Ownership
91.4% of TE Connectivity shares are held by institutional investors. Comparatively, 9.6% of ClearOne shares are held by institutional investors. 0.6% of TE Connectivity shares are held by insiders. Comparatively, 0.2% of ClearOne shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
TE Connectivity has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, ClearOne has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
Valuation and Earnings
This table compares TE Connectivity and ClearOne”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TE Connectivity | $19.89 billion | 3.19 | $3.25 billion | $11.07 | 19.77 |
| ClearOne | $11.39 million | 1.08 | -$26.08 million | ($1.15) | -4.00 |
TE Connectivity has higher revenue and earnings than ClearOne. ClearOne is trading at a lower price-to-earnings ratio than TE Connectivity, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for TE Connectivity and ClearOne, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TE Connectivity | 1 | 5 | 11 | 0 | 2.59 |
| ClearOne | 1 | 0 | 0 | 0 | 1.00 |
TE Connectivity currently has a consensus price target of $255.50, suggesting a potential upside of 16.75%. Given TE Connectivity’s stronger consensus rating and higher probable upside, research analysts clearly believe TE Connectivity is more favorable than ClearOne.
Summary
TE Connectivity beats ClearOne on 13 of the 13 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 ClearOne
ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, and network streaming solutions for voice and visual communications in the United States and internationally. The company offers a range of audio conferencing products, including professional audio conferencing and sound-reinforcement products for use in enterprise, healthcare, education and distance learning, government, legal, and finance organizations; mid-tier premium conferencing products for smaller rooms, and small and medium businesses, which interface with video and Web conferencing systems; USB-based personal and group speakerphones that could be used with PCs, laptops, tablets, smartphones, and other portable devices; and traditional tabletop conferencing phones used in conference rooms and offices. It provides professional microphones consisting of beamforming microphones, ceiling microphones, and wireless microphones. In addition, the company offers video products, such as video conferencing and collaboration solutions; professional-grade cameras; and AV networking, which deliver the IP A/V experience by streaming time sensitive high definition audio and video, and control over TCP/IP networks. It sells its commercial products to a network of independent professional audiovisual, information technology, and telecommunications distributors, as well as systems integrators, dealers, value-added resellers, and end-users. ClearOne, Inc. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
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