WallStSmart

H2O America (HTO)vsTE Connectivity Ltd (TEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TE Connectivity Ltd generates 2190% more annual revenue ($18.70B vs $816.28M). TEL leads profitability with a 15.5% profit margin vs 12.9%. TEL appears more attractively valued with a PEG of 1.08. TEL earns a higher WallStSmart Score of 76/100 (B+).

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0

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

HTOUndervalued (+32.5%)

Margin of Safety

+32.5%

Fair Value

$76.99

Current Price

$57.60

$19.39 discount

UndervaluedFair: $76.99Overvalued
TELSignificantly Overvalued (-60.4%)

Margin of Safety

-60.4%

Fair Value

$142.48

Current Price

$216.17

$73.69 premium

UndervaluedFair: $142.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

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

HTO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

PEG RatioValuation
2.512/10

Expensive relative to growth rate

Free Cash FlowQuality
$-49.23M2/10

Negative free cash flow — burning cash

TEL0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

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 : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.

Bear Case : TEL

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

Key Dynamics to Monitor

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

TEL carries more volatility with a beta of 1.18 — 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 57/100), backed by strong 15.5% margins and 14.5% revenue growth. HTO offers better value entry with a 32.5% 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.

H2O America

UTILITIES · UTILITIES - REGULATED WATER · USA

H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.

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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