WallStSmart

Benchmark Electronics Inc (BHE)vsTE Connectivity Ltd (TEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TE Connectivity Ltd generates 580% more annual revenue ($18.09B vs $2.66B). BHE leads profitability with a 94.0% profit margin vs 11.4%. TEL appears more attractively valued with a PEG of 1.14. TEL earns a higher WallStSmart Score of 74/100 (B).

BHE

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 4.7Quality: 5.0

TEL

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 9.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHESignificantly Overvalued (-1175.5%)

Margin of Safety

-1175.5%

Fair Value

$4.62

Current Price

$59.03

$54.41 premium

UndervaluedFair: $4.62Overvalued
TELUndervalued (+29.8%)

Margin of Safety

+29.8%

Fair Value

$325.26

Current Price

$206.37

$118.89 discount

UndervaluedFair: $325.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHE2 strengths · Avg: 9.0/10
Profit MarginProfitability
94.0%10/10

Keeps 94 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

TEL4 strengths · Avg: 8.3/10
Market CapQuality
$60.58B9/10

Large-cap with strong market position

Operating MarginProfitability
20.9%8/10

Strong operational efficiency at 20.9%

Revenue GrowthGrowth
21.7%8/10

Revenue surging 21.7% year-over-year

EPS GrowthGrowth
44.4%8/10

Earnings expanding 44.4% YoY

Areas to Watch

BHE4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.3%3/10

ROE of 2.3% — below average capital efficiency

Operating MarginProfitability
3.3%3/10

Operating margin of 3.3%

P/E RatioValuation
86.8x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-63.7%2/10

Earnings declined 63.7%

TEL1 concerns · Avg: 4.0/10
P/E RatioValuation
29.7x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : BHE

The strongest argument for BHE centers on Profit Margin, Price/Book. Profitability is solid with margins at 94.0% and operating margin at 3.3%. PEG of 1.33 suggests the stock is reasonably priced for its growth.

Bull Case : TEL

The strongest argument for TEL centers on Market Cap, Operating Margin, Revenue Growth. Revenue growth of 21.7% demonstrates continued momentum. PEG of 1.14 suggests the stock is reasonably priced for its growth.

Bear Case : BHE

The primary concerns for BHE are Return on Equity, Operating Margin, P/E Ratio. A P/E of 86.8x leaves little room for execution misses.

Bear Case : TEL

The primary concerns for TEL are P/E Ratio.

Key Dynamics to Monitor

BHE profiles as a mature stock while TEL is a growth play — different risk/reward profiles.

TEL carries more volatility with a beta of 1.25 — expect wider price swings.

TEL is growing revenue faster at 21.7% — sustainability is the question.

TEL generates stronger free cash flow (607M), providing more financial flexibility.

Bottom Line

TEL scores higher overall (74/100 vs 51/100) and 21.7% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Benchmark Electronics Inc

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Benchmark Electronics, Inc. provides product design, engineering services, technology solutions, and advanced manufacturing services in the Americas, Asia, and Europe. The company is headquartered in Tempe, Arizona.

TE Connectivity Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.

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