Maxwell Technologies (NASDAQ: MXWL) and TE Connectivity (NYSE:TEL) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitabiliy, risk, valuation, earnings, institutional ownership and dividends.

Volatility & Risk

Maxwell Technologies has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Maxwell Technologies and TE Connectivity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maxwell Technologies -24.18% -27.94% -20.24%
TE Connectivity 16.40% 19.65% 9.53%

Institutional and Insider Ownership

46.3% of Maxwell Technologies shares are owned by institutional investors. Comparatively, 90.7% of TE Connectivity shares are owned by institutional investors. 3.5% of Maxwell Technologies shares are owned by insiders. Comparatively, 1.3% of TE Connectivity shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Maxwell Technologies and TE Connectivity, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxwell Technologies 0 4 0 0 2.00
TE Connectivity 1 1 5 0 2.57

Maxwell Technologies presently has a consensus price target of $5.50, suggesting a potential downside of 7.09%. TE Connectivity has a consensus price target of $82.67, suggesting a potential upside of 0.09%. Given TE Connectivity’s stronger consensus rating and higher possible upside, analysts clearly believe TE Connectivity is more favorable than Maxwell Technologies.

Earnings & Valuation

This table compares Maxwell Technologies and TE Connectivity’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Maxwell Technologies $112.73 million 1.69 -$16.75 million ($0.84) -7.05
TE Connectivity $12.74 billion 2.30 $2.73 billion $5.81 14.22

TE Connectivity has higher revenue and earnings than Maxwell Technologies. Maxwell Technologies is trading at a lower price-to-earnings ratio than TE Connectivity, indicating that it is currently the more affordable of the two stocks.

Dividends

TE Connectivity pays an annual dividend of $1.60 per share and has a dividend yield of 1.9%. Maxwell Technologies does not pay a dividend. TE Connectivity pays out 27.5% of its earnings in the form of a dividend. TE Connectivity has increased its dividend for 6 consecutive years.

Summary

TE Connectivity beats Maxwell Technologies on 14 of the 16 factors compared between the two stocks.

About Maxwell Technologies

Maxwell Technologies, Inc. develops, manufactures and markets energy storage and power delivery products for transportation, industrial, information technology and other applications and microelectronic products for space and satellite applications. The Company offers three product lines: Ultracapacitors, High-Voltage Capacitors and Radiation-Hardened Microelectronic Products. The Company’s ultracapacitor cells and multi-cell packs, and modules provide energy storage and power delivery solutions for applications in multiple industries. The Company offers ultracapacitor cells with capacitances ranging from 1 to 3,400 farads. It designs and manufactures CONDIS high-voltage capacitors. These products include grading and coupling capacitors and electric voltage transformers. The Company’s radiation-hardened microelectronic products for satellites and spacecraft include single board computers and components, such as high-density memory and data conversion modules.

About TE Connectivity

TE Connectivity Ltd. is a technology company. The Company designs and manufactures connectivity and sensors solutions. It operates through three segments: Transportation Solutions, Industrial Solutions and Communications Solutions. The Transportation Solutions segment offers connectivity and sensor technologies. Its products are used in the automotive, commercial transportation and sensors markets. It sells primary products, including terminals and connector systems and components, sensors, relays, application tooling, and wire and heat shrink tubing. The Industrial Solutions segment is a supplier of products that connect and distribute power, data and signals. The Industrial Solutions segment offers products, such as terminals and connector systems and components; heat shrink tubing; relays, and wire and cable. The Communications Solutions segment is a supplier of electronic components for the data and devices and appliances markets.

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