WallStSmart

Fabrinet (FN)vsTE Connectivity Ltd (TEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TE Connectivity Ltd generates 365% more annual revenue ($18.09B vs $3.89B). TEL leads profitability with a 11.4% profit margin vs 9.7%. TEL appears more attractively valued with a PEG of 1.15. TEL earns a higher WallStSmart Score of 74/100 (B).

FN

Buy

65

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 8.7Quality: 8.0
Piotroski: 2/9Altman Z: 4.74

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

FNUndervalued (+4.6%)

Margin of Safety

+4.6%

Fair Value

$488.12

Current Price

$506.27

$18.15 discount

UndervaluedFair: $488.12Overvalued
TELUndervalued (+28.7%)

Margin of Safety

+28.7%

Fair Value

$320.58

Current Price

$195.84

$124.74 discount

UndervaluedFair: $320.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FN4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
35.9%10/10

Revenue surging 35.9% year-over-year

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7410/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
30.7%8/10

Earnings expanding 30.7% YoY

TEL4 strengths · Avg: 8.3/10
Market CapQuality
$57.49B9/10

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

FN4 concerns · Avg: 2.8/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
48.5x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-5.35M2/10

Negative free cash flow — burning cash

TEL1 concerns · Avg: 4.0/10
P/E RatioValuation
28.6x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : FN

The strongest argument for FN centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 35.9% demonstrates continued momentum. PEG of 1.19 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 1.15 suggests the stock is reasonably priced for its growth.

Bear Case : FN

The primary concerns for FN are Price/Book, Piotroski F-Score, P/E Ratio. A P/E of 48.5x leaves little room for execution misses.

Bear Case : TEL

The primary concerns for TEL are P/E Ratio.

Key Dynamics to Monitor

FN profiles as a hypergrowth 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.

FN is growing revenue faster at 35.9% — sustainability is the question.

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

Bottom Line

TEL scores higher overall (74/100 vs 65/100) 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.

Fabrinet

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Fabrinet offers optical packaging and precision electronic, electromechanical and optical manufacturing services in North America, Asia-Pacific and Europe. The company is headquartered in George Town, the Cayman Islands.

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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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