TE CONNECTIVITY PLC vs WATSCO INC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
TE Connectivity manufactures connectors at a 15.54% margin; Watsco distributes HVAC at 6.85%, and TE earns the higher return on equity, 21.96% against 15.43%, at a lower multiple, 20.2 times earnings against 33.7. Watsco's edge is its balance sheet and income, 0.11 turns of debt against 0.43 and a 2.85% dividend against 1.37%. Both convert strong free cash. The pair compares a quality manufacturer with a quality distributor: TE offers higher margins, higher returns, and a cheaper price, Watsco a pristine balance sheet and a richer dividend, and while Watsco is an excellent distributor, TE's combination of superior economics and lower valuation makes it the better value here.
Comparison updated 2026-07-11.
| Metric | TEL | WSO |
|---|---|---|
| Price | $200.28 | $384.10 |
| Market cap | $59.1B | $14.6B |
| Sector | Distribution | Distribution |
| Stage | Growth | Mature |
| Implied growth (priced in) | +18.7% | +19.8% |
| P/E | 20.4 | 31.5 |
| P/B | 4.46 | 4.54 |
| P/S | 3.16 | 2.01 |
| EV/EBITDA | 15.4 | 20.0 |
| Revenue growth | +16.7% | -4.4% |
| Gross margin | 36.8% | 27.9% |
| Operating margin | 20.1% | 7.2% |
| Net margin | 15.5% | 6.8% |
| Return on equity | 22.0% | 15.4% |
| Return on assets | 11.3% | 10.7% |
| Return on invested capital | 17.7% | 16.0% |
| FCF yield | 5.7% | 4.8% |
| Dividend yield | 1.4% | 3.0% |
| Debt / equity | 0.43 | 0.11 |
| Current ratio | 1.89 | 3.34 |
| Altman Z (solvency) | 4.67 | 8.60 |
| Piotroski F (quality) | 6 / 9 | 5 / 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.