WallStSmart

Flex Ltd (FLEX)vsTE Connectivity Ltd (TEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Flex Ltd generates 44% more annual revenue ($26.83B vs $18.70B). TEL leads profitability with a 15.5% profit margin vs 3.2%. FLEX appears more attractively valued with a PEG of 0.94. TEL earns a higher WallStSmart Score of 76/100 (B+).

FLEX

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.14

TEL

Strong Buy

76

out of 100

Grade: B+

Growth: 6.7Profit: 8.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FLEXUndervalued (+43.3%)

Margin of Safety

+43.3%

Fair Value

$114.26

Current Price

$96.45

$17.81 discount

UndervaluedFair: $114.26Overvalued
TELSignificantly Overvalued (-60.7%)

Margin of Safety

-60.7%

Fair Value

$142.16

Current Price

$206.94

$64.78 premium

UndervaluedFair: $142.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FLEX1 strengths · Avg: 8.0/10
PEG RatioValuation
0.948/10

Growing faster than its price suggests

TEL4 strengths · Avg: 9.0/10
EPS GrowthGrowth
7150.0%10/10

Earnings expanding 7150.0% YoY

Market CapQuality
$59.92B9/10

Large-cap with strong market position

Return on EquityProfitability
22.7%9/10

Every $100 of equity generates 23 in profit

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

FLEX4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Debt/EquityHealth
1.093/10

Elevated debt levels

P/E RatioValuation
41.1x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-4.5%2/10

Earnings declined 4.5%

TEL0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : FLEX

The strongest argument for FLEX centers on PEG Ratio. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bull Case : TEL

The strongest argument for TEL centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 15.5% and operating margin at 20.3%. Revenue growth of 14.5% demonstrates continued momentum.

Bear Case : FLEX

The primary concerns for FLEX are Profit Margin, Debt/Equity, P/E Ratio. A P/E of 41.1x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.

Bear Case : TEL

No major red flags identified for TEL, but monitor valuation.

Key Dynamics to Monitor

FLEX profiles as a value stock while TEL is a mature play — different risk/reward profiles.

FLEX carries more volatility with a beta of 1.45 — expect wider price swings.

TEL is growing revenue faster at 14.5% — sustainability is the question.

TEL generates stronger free cash flow (677M), providing more financial flexibility.

Bottom Line

TEL scores higher overall (76/100 vs 52/100), backed by strong 15.5% margins and 14.5% revenue growth. FLEX offers better value entry with a 43.3% margin of safety. 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.

Flex Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.

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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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