WallStSmart

Fabrinet (FN)vsTE Connectivity Ltd (TEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TE Connectivity Ltd generates 341% more annual revenue ($18.70B vs $4.24B). TEL leads profitability with a 15.5% profit margin vs 9.9%. TEL appears more attractively valued with a PEG of 0.97. TEL earns a higher WallStSmart Score of 78/100 (B+).

FN

Buy

65

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 4.3Quality: 8.0
Piotroski: 2/9Altman Z: 4.74

TEL

Strong Buy

78

out of 100

Grade: B+

Growth: 6.7Profit: 8.0Value: 6.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.65

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FN4 strengths · Avg: 10.0/10
Revenue GrowthGrowth
39.3%10/10

Revenue surging 39.3% year-over-year

EPS GrowthGrowth
53.3%10/10

Earnings expanding 53.3% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7410/10

Safe zone — low bankruptcy risk

TEL5 strengths · Avg: 8.8/10
EPS GrowthGrowth
7150.0%10/10

Earnings expanding 7150.0% YoY

Market CapQuality
$63.09B9/10

Large-cap with strong market position

Return on EquityProfitability
22.0%9/10

Every $100 of equity generates 22 in profit

PEG RatioValuation
0.978/10

Growing faster than its price suggests

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

FN4 concerns · Avg: 2.8/10
Price/BookValuation
9.7x4/10

Trading at 9.7x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
52.4x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-10.83M2/10

Negative free cash flow — burning cash

TEL1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : FN

The strongest argument for FN centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 39.3% 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 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 : FN

The primary concerns for FN are Price/Book, Piotroski F-Score, P/E Ratio. A P/E of 52.4x leaves little room for execution misses.

Bear Case : TEL

The primary concerns for TEL are Piotroski F-Score.

Key Dynamics to Monitor

FN profiles as a hypergrowth stock while TEL is a mature play — different risk/reward profiles.

FN carries more volatility with a beta of 1.17 — expect wider price swings.

FN is growing revenue faster at 39.3% — sustainability is the question.

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

Bottom Line

TEL scores higher overall (78/100 vs 65/100), backed by strong 15.5% margins and 14.5% 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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