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ALAB vs. TEL: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at ALAB and TEL, comparing key factors like performance, valuation metrics, dividends, and financial strength.

Company Overview

TEL’s market capitalization of 48.14 billion USD is significantly greater than ALAB’s 14.96 billion USD, highlighting its more substantial market valuation.

With betas of 1.40 for ALAB and 1.22 for TEL, both stocks show similar sensitivity to overall market movements.

SymbolALABTEL
Company NameAstera Labs, Inc. Common StockTE Connectivity Ltd.
CountryUSCH
SectorTechnologyTechnology
IndustrySemiconductorsHardware, Equipment & Parts
CEOMr. Jitendra MohanMr. Terrence R. Curtin CPA
Price90.71 USD162.32 USD
Market Cap14.96 billion USD48.14 billion USD
Beta1.401.22
ExchangeNASDAQNYSE
IPO DateMarch 20, 2024June 14, 2007
ADRNoNo

Performance Comparison

This chart compares the performance of ALAB and TEL over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of ALAB and TEL. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

  • ALAB’s Price-to-Earnings (P/E) ratio of 357.63 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
  • ALAB’s Forward PEG ratio of 10.79 and TEL’s Forward PEG ratio of 3.19 are both considered very high. For ALAB, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. TEL’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
  • ALAB’s Price-to-Book (P/B) ratio of 14.21 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.
SymbolALABTEL
Price-to-Earnings Ratio (P/E, TTM)357.6334.80
Forward PEG Ratio (TTM)10.793.19
Price-to-Sales Ratio (P/S, TTM)30.503.00
Price-to-Book Ratio (P/B, TTM)14.214.00
EV-to-EBITDA (TTM)-819.5013.54
EV-to-Sales (TTM)30.323.19

Dividend Comparison

ALAB currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while TEL provides a 1.64% dividend yield, offering investors a component of income return.

SymbolALABTEL
Dividend Yield (TTM)0.00%1.64%

Financial Strength Metrics Comparison

Explore the financial strength details for ALAB and TEL in the table below.

SymbolALABTEL
Current Ratio (TTM)13.921.51
Quick Ratio (TTM)13.261.08
Debt-to-Equity Ratio (TTM)--0.46
Debt-to-Asset Ratio (TTM)--0.24
Net Debt-to-EBITDA Ratio (TTM)4.760.81
Interest Coverage Ratio (TTM)--55.98