Sanmina Corporation (SANM) vs TE Connectivity Ltd. (TEL)

Sanmina Corporation and TE Connectivity Ltd. are both Electronic Components companies. TE Connectivity Ltd. is the larger, with a market value of $61.7B against $10.1B — 6.1× the size. TE Connectivity Ltd. trades at the lower P/E: 20.7× against 30.8×. Sanmina Corporation grew revenue faster over the last twelve months: 58.6% against 16.5%. TE Connectivity Ltd. has the higher net margin (15.6% vs 2.41%) and the higher return on invested capital (13.6% vs 10.7%). Across the 22 metrics below, TE Connectivity Ltd. leads on 12 and Sanmina Corporation on 10.

Valuation

Metric SANM TEL Electronic Components median
P/E 30.82 20.66 30.82
P/S 0.74 3.20 2.84
P/B 3.73 4.67 2.93
Price to free cash flow 15.80 18.61 28.42
EV/EBITDA 13.16 13.92 16.22
EV/Sales 0.77 3.47 2.94
Earnings yield 3.24% 4.84% 1.67%
Free cash flow yield 6.33% 5.37% 0.58%

Profitability

Metric SANM TEL Electronic Components median
Gross margin 9.01% 36.12% 33.21%
Operating margin 4.15% 19.74% 3.90%
Net margin 2.41% 15.61% 2.90%
Free cash flow margin 4.69% 17.21% 0.20%
Return on equity 0.00% 23.54% 2.60%
Return on assets 4.12% 11.84% 2.50%
Return on invested capital 10.74% 13.59% 2.28%

Growth

Metric SANM TEL Electronic Components median
Revenue growth (TTM) 58.56% 16.53% 12.21%
EPS growth (last fiscal year) 14.07% (40.37%) 42.31%
Revenue growth, 5-year CAGR 3.18% 7.24% 7.19%
Net income growth, 5-year CAGR 13.05% 0.00% 0.00%

Health

Metric SANM TEL Electronic Components median
Debt to equity 0.79 0.42 0.13
Current ratio 1.78 1.88 2.41
Net debt to EBITDA (1.32) 0.89 0.34

Dividend

Metric SANM TEL Electronic Components median
Dividend yield — 1.40% 0.91%
Payout ratio — 0.29 0.29

Size

Metric SANM TEL Electronic Components median
Market cap 10.12b 61.66b 707.24m

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