Ferguson Enterprises Inc. vs TE CONNECTIVITY PLC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Ferguson distributes building products at a 37.78% return on equity; TE Connectivity manufactures connectors and sensors at 21.96%, and while Ferguson wins on return, TE wins on margin, 15.54% against 6.87%, the difference between making and moving. TE trades cheaper, 20.2 times earnings against 21.2, and converts more free cash, 5.81% against 4.45%. Both carry moderate debt and pay a 1.37% dividend. The pair compares a best-in-class distributor with a quality manufacturer: Ferguson earns exceptional returns on a thin distributor margin through sheer scale, TE earns strong returns on fat manufacturing margins, and both are high-quality names, with TE slightly cheaper for its maker economics.
Comparison updated 2026-07-11.
| Metric | FERG | TEL |
|---|---|---|
| Price | $238.57 | $198.01 |
| Market cap | $46.5B | $58.4B |
| Sector | Distribution | Distribution |
| Stage | Mature | Growth |
| Implied growth (priced in) | +17.6% | +18.7% |
| P/E | 21.2 | 20.2 |
| P/B | 7.91 | 4.41 |
| P/S | 1.44 | 3.12 |
| EV/EBITDA | 14.4 | 15.2 |
| Revenue growth | +6.7% | +16.7% |
| Gross margin | 31.0% | 36.8% |
| Operating margin | 8.2% | 20.1% |
| Net margin | 6.9% | 15.5% |
| Return on equity | 37.8% | 22.0% |
| Return on assets | 12.5% | 11.3% |
| Return on invested capital | 22.7% | 17.7% |
| FCF yield | 4.5% | 5.8% |
| Dividend yield | 1.4% | 1.4% |
| Debt / equity | 0.70 | 0.43 |
| Current ratio | 1.78 | 1.89 |
| Altman Z (solvency) | 5.15 | 4.64 |
| Piotroski F (quality) | 7 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.