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NET vs TEL

NET
Cloudflare, Inc.
BEARISH
Price
$206.34
Market Cap
$72.63B
Sector
Technology
AI Confidence
65%
TEL
TE Connectivity plc
BULLISH
Price
$237.33
Market Cap
$69.82B
Sector
Technology
AI Confidence
92%

Valuation

P/E Ratio
NET
--
TEL
38.47
Forward P/E
NET
143.12
TEL
26.4
P/B Ratio
NET
49.76
TEL
5.55
P/S Ratio
NET
33.5
TEL
4.04
EV/EBITDA
NET
-1697.45
TEL
17.85

Profitability

Gross Margin
NET
74.51%
TEL
35.22%
Operating Margin
NET
-7.02%
TEL
19.77%
Profit Margin
NET
-4.72%
TEL
10.67%
ROE
NET
-8.16%
TEL
14.62%
ROA
NET
-2.69%
TEL
8.78%

Growth

Revenue Growth
NET
33.6%
TEL
16.7%
Earnings Growth
NET
--
TEL
145.3%

Financial Health

Debt/Equity
NET
2.41
TEL
0.5
Current Ratio
NET
1.98
TEL
1.56
Quick Ratio
NET
1.92
TEL
0.91

Dividends

Dividend Yield
NET
--
TEL
1.2%
Payout Ratio
NET
0.0%
TEL
44.16%

AI Verdict

NET BEARISH

NET shows bearish fundamentals based on deterministic rules. Financial strength is weak (F-Score 2/9). Concerns include weak profitability or high valuation.

Strengths
Strong revenue growth of 33.6%
Risks
Low profit margin of -4.7%
Weak financial trend (Piotroski F-Score: 2/9)
High debt burden with D/E of 2.41
TEL BULLISH

TE Connectivity (TEL) exhibits strong fundamental momentum with robust double-digit revenue and earnings growth, consistent earnings beat rates, and improving margins, all while trading below its analyst target price. Despite a premium valuation relative to historical norms, TEL's metrics appear justified within the context of a high-growth technology sector where peers trade at even loftier multiples. The company maintains solid financial health with a conservative debt profile and durable profitability, positioning it well for continued outperformance. However, recent insider selling—particularly by the CEO and CFO—raises a cautionary note, though it does not override the broader positive trajectory supported by strong institutional sentiment and accelerating earnings.

Strengths
Exceptional YoY earnings growth of 145.3%, reflecting strong operating leverage and demand tailwinds across industrial and automotive end markets
Consistent earnings outperformance: 22 out of 25 quarters beat estimates, with an average surprise of 7.64% over the last four quarters
Superior profitability with operating margin of 19.77% and ROE of 14.62%, both above sector-adjusted benchmarks when considering capital intensity
Risks
Premium valuation: Forward P/E of 26.4x is high relative to historical averages, leaving limited margin for error if growth decelerates
Recent insider selling totaling $94.95M, including significant transactions by the CEO and CFO, signals potential lack of confidence at the top
Limited free cash flow and cash/debt transparency (data unavailable), creating opacity around capital allocation capacity and liquidity resilience

Compare Another Pair

NET vs TEL: Head-to-Head Comparison

This page compares Cloudflare, Inc. (NET) and TE Connectivity plc (TEL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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