Ralliant Corporation (RAL) vs TE Connectivity Ltd. (TEL)

Ralliant Corporation and TE Connectivity Ltd. are both Electronic Components companies. TE Connectivity Ltd. is the larger, with a market value of $59.3B against $7.0B — 8.5× the size. Ralliant Corporation has negative trailing earnings, so its P/E is not meaningful; TE Connectivity Ltd. trades at 18.6×. TE Connectivity Ltd. grew revenue faster over the last twelve months: 15.2% against 11.3%. TE Connectivity Ltd. has the higher net margin (16.4% vs −52.1%) and the higher return on invested capital (14.7% vs −28.7%). Both pay a dividend; TE Connectivity Ltd. yields more (1.43% vs 0.32%). Across the 20 metrics below, TE Connectivity Ltd. leads on 18 and Ralliant Corporation on 2.

Valuation

Metric RAL TEL Electronic Components median
P/E n/m 18.64 24.82
P/S 3.06 3.02 2.28
P/B 4.30 4.43 2.86
Price to free cash flow 22.96 17.61 22.99
EV/EBITDA 20.89 13.38 14.69
EV/Sales 3.63 3.24 2.38
Earnings yield (16.71%) 5.36% 2.68%
Free cash flow yield 4.35% 5.68% 1.70%

Profitability

Metric RAL TEL Electronic Components median
Gross margin 51.59% 36.24% 32.78%
Operating margin (48.30%) 20.07% 4.90%
Net margin (52.10%) 16.36% 3.46%
Free cash flow margin 13.31% 17.16% 1.66%
Return on equity (51.80%) 24.87% 5.59%
Return on assets (26.14%) 12.57% 4.13%
Return on invested capital (28.65%) 14.66% 4.66%

Growth

Metric RAL TEL Electronic Components median
Revenue growth (TTM) 11.30% 15.20% 13.94%
EPS growth (last fiscal year) (442.61%) 79.62% 35.44%
Revenue growth, 5-year CAGR — 5.91% 6.70%
Net income growth, 5-year CAGR — 7.55% 7.53%

Health

Metric RAL TEL Electronic Components median
Debt to equity 0.71 0.38 0.11
Current ratio 1.65 1.73 2.50
Net debt to EBITDA 2.22 0.68 0.41

Dividend

Metric RAL TEL Electronic Components median
Dividend yield 0.32% 1.43% 1.10%
Payout ratio — 0.27 0.28

Size

Metric RAL TEL Electronic Components median
Market cap 6.95b 59.33b 1.16b

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