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CTS vs TEL
Which Stock Would AI Choose? CTS Corporation (CTS) vs. TE Connectivity (TEL) Stock Comparison
Key Takeaways
- CTS Corporation (CTS) is a small-cap sensor and actuator specialist, while TE Connectivity (TEL) is a large-cap global leader in connectors and sensors.
- Both companies benefit from electrification and connectivity trends, but TEL carries far greater exposure to fast-growing AI (artificial intelligence) and data center demand.
- CTS has posted steady single-digit revenue growth, while TEL has delivered double-digit sales and earnings-per-share (EPS) growth in recent quarters.
- CTS trades at a lower market capitalization with a net cash balance sheet, whereas TEL offers scale, a growing dividend, and heavy buybacks.
- Recent market sentiment has favored TEL's momentum and order visibility, though CTS has drawn renewed analyst coverage for its diversification strategy.
Introduction
CTS Corporation and TE Connectivity both operate in the electronic components industry, designing and manufacturing sensors and connectivity products for industrial and transportation markets. Despite that shared footing, the two companies occupy very different positions in the market. CTS is a smaller, focused player valued at roughly $1.7 billion, while TE Connectivity is a diversified global enterprise many times its size. For traders and investors weighing relative performance, growth catalysts, and risk, this stock comparison offers a useful lens. Growth-oriented investors may gravitate toward TEL's AI-driven momentum, while those seeking a smaller, value-oriented turnaround story may find CTS more compelling. Understanding how these two names diverge in market positioning is central to this analysis.
CTS Overview and Recent Performance
CTS (NYSE: CTS), formally CTS Corporation, traces its roots to 1896 and designs and manufactures sensors, connectivity components, and actuators for aerospace, defense, industrial, medical, and transportation markets. The company has pursued a deliberate diversification strategy, shifting revenue toward faster-growing end markets and away from its legacy transportation exposure.
In recent weeks, CTS has reported better-than-expected quarterly results, with sales rising roughly 7% year over year and adjusted EPS exceeding consensus estimates by a wide margin. Management modestly raised its full-year revenue and earnings guidance, reflecting improved operating margins and stronger free cash flow (FCF, the cash a company generates after capital spending). The company has also continued returning capital to shareholders through share repurchases and maintains a net cash position. Sentiment has been supported by new analyst coverage with a buy rating and average price targets above the prevailing share price, though lingering softness in transportation and certain medical lines remains a key watchpoint.
TEL Overview and Recent Performance
TEL (NYSE: TEL), formally TE Connectivity plc, is a global leader in connectors and sensors, supplying industries spanning automotive, industrial, energy, and data communications. The company is a major beneficiary of electrification, automation, and the buildout of AI data centers, where rising power and connectivity content per system has driven outsized demand.
Recent market activity has been strong for TEL. In its most recent reported quarter, sales rose roughly 14% year over year and adjusted EPS climbed more than 20%, with record orders and a book-to-bill ratio above 1.0, indicating incoming demand outpacing shipments. Growth has been led by its Digital Data Networks business, which has posted sharp gains tied to AI infrastructure. The company has also expanded its power capabilities through acquisitions, announced a 10% dividend increase, and added to its buyback authorization. Sentiment remains constructive, though the stock's valuation and a softer year-to-date share price pattern suggest investors are weighing near-term risks against longer-term momentum.
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Head-to-Head Comparison
The clearest contrast between these two names is scale and diversification. CTS is a focused, small-cap operator with annual revenue in the hundreds of millions of dollars and a meaningful concentration in transportation and industrial sensor applications. TE Connectivity generates billions in quarterly revenue across automotive, industrial, energy, and data communications, giving it broader end-market balance and deeper exposure to secular megatrends.
Growth profiles also differ sharply. CTS is growing at a mid-single-digit pace, with its diversification initiative gradually reshaping the revenue mix. TEL, by comparison, has delivered double-digit sales and EPS growth, propelled by AI-driven demand in its Digital Data Networks segment and record order momentum. On valuation and balance sheet, CTS trades at a lower absolute price with a net cash position, which some investors read as a margin of safety, while TEL commands a premium multiple that reflects its faster growth and larger scale.
Risk factors also diverge. CTS faces cyclical sensitivity in transportation and medical markets, plus exposure to trade and tariff pressures. TEL carries similar cyclical risks in automotive and commercial transportation, but its AI exposure introduces a different set of concerns around data center demand and potential pricing pressure. In terms of market sentiment, TEL's momentum and order visibility currently appear stronger, while CTS's story leans more on execution of its diversification strategy.
Tickeron AI Verdict
Based on observable factors such as trend consistency, order visibility, growth catalysts, and relative positioning, Tickeron's AI would likely lean toward TE Connectivity in the current environment. TEL's combination of double-digit revenue and earnings growth, record orders, and a book-to-bill ratio above 1.0 suggests a more consistent and durable trend than CTS's steadier but slower expansion. That said, this is a probabilistic assessment rather than a definitive outcome. CTS's net cash balance sheet, improving margins, and rising analyst attention provide a credible catalyst set of its own, particularly for investors focused on valuation and smaller-cap dynamics. The AI's preference reflects relative momentum and trend quality today, not a guarantee of future returns.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CTS is a Buy and TEL is a Buy.
CTS's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for CTS turned positive on October 27, 2026. Looking at past instances where CTS's MACD turned positive, the stock continued to rise in 34 of 45 cases over the following month. The odds of a continued upward trend are 76%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on CTS as a result. In 66 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 73%.
CTS moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CTS crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +7.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where CTS advanced for three days, in 208 of 301 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
The Aroon Indicator entered an Uptrend today. In 167 of 226 cases where CTS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Bearish Trend Analysis
The 10-day RSI Indicator for CTS moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In 22 of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at 73%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CTS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.
CTS broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 21 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 34 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. CTS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 63 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 66 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.133) is normal, around the industry mean (4.205). P/E Ratio (26.079) is within average values for comparable stocks, (5.559). Projected Growth (PEG Ratio) (1.279) is also within normal values, averaging (0.930). Dividend Yield (0.003) settles around the average of (0.020) among similar stocks. P/S Ratio (2.945) is also within normal values, averaging (4.422).
TEL in upward trend: price rose above 50-day moving average on October 26, 2026
TEL moved above its 50-day moving average on October 26, 2026 date and that indicates a change from a downward trend to an upward trend. In 38 of 56 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on TEL as a result. In 62 of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
The Moving Average Convergence Divergence (MACD) for TEL just turned positive on October 27, 2026. Looking at past instances where TEL's MACD turned positive, the stock continued to rise in 25 of 48 cases over the following month. The odds of a continued upward trend are 52%.
Following a +8.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEL advanced for three days, in 204 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
The Aroon Indicator entered an Uptrend today. In 126 of 210 cases where TEL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 60%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 34 of 66 cases where TEL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 52%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 53%.
TEL broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 27 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock better than average.
The Tickeron SMR rating for this company is 41 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating steady price growth. TEL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 60 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.754) is normal, around the industry mean (4.205). P/E Ratio (21.179) is within average values for comparable stocks, (5.559). Projected Growth (PEG Ratio) (0.919) is also within normal values, averaging (0.930). Dividend Yield (0.014) settles around the average of (0.020) among similar stocks. P/S Ratio (3.089) is also within normal values, averaging (4.422).
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
CTS | TEL | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 20 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 66 Overvalued | 60 Fair valued | |
PROFIT vs RISK RATING 1..100 | 34 | 27 | |
SMR RATING 1..100 | 63 | 41 | |
PRICE GROWTH RATING 1..100 | 44 | 52 | |
P/E GROWTH RATING 1..100 | 21 | 88 | |
SEASONALITY SCORE 1..100 | 50 | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
TEL's Valuation (60) in the Electronic Components industry is in the same range as CTS (66). This means that TEL’s stock grew similarly to CTS’s over the last 12 months.
TEL's Profit vs Risk Rating (27) in the Electronic Components industry is in the same range as CTS (34). This means that TEL’s stock grew similarly to CTS’s over the last 12 months.
TEL's SMR Rating (41) in the Electronic Components industry is in the same range as CTS (63). This means that TEL’s stock grew similarly to CTS’s over the last 12 months.
CTS's Price Growth Rating (44) in the Electronic Components industry is in the same range as TEL (52). This means that CTS’s stock grew similarly to TEL’s over the last 12 months.
CTS's P/E Growth Rating (21) in the Electronic Components industry is significantly better than the same rating for TEL (88). This means that CTS’s stock grew significantly faster than TEL’s over the last 12 months.
| CTS | TEL | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 73% | N/A |
| Stochastic ODDS (%) | 2 days ago 70% | 2 days ago 52% |
| Momentum ODDS (%) | 2 days ago 73% | 2 days ago 62% |
| MACD ODDS (%) | 2 days ago 76% | 2 days ago 52% |
| TrendWeek ODDS (%) | 2 days ago 67% | 2 days ago 57% |
| TrendMonth ODDS (%) | 2 days ago 62% | 2 days ago 54% |
| Advances ODDS (%) | 6 days ago 69% | 8 days ago 61% |
| Declines ODDS (%) | 12 days ago 62% | 12 days ago 53% |
| BollingerBands ODDS (%) | 2 days ago 63% | 2 days ago 56% |
| Aroon ODDS (%) | 2 days ago 74% | 2 days ago 60% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CTS’s FA Score shows that 1 FA rating(s) are green while TEL’s FA Score has 1 green FA rating(s).
- CTS’s FA Score: 1 green, 4 red.
- TEL’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CTS’s TA Score shows that 6 TA indicator(s) are bullish while TEL’s TA Score has 5 bullish TA indicator(s).
- CTS’s TA Score: 6 bullish, 4 bearish.
- TEL’s TA Score: 5 bullish, 3 bearish.
Price Growth
CTS (@Electronic Components) experienced а +16.56% price change this week, while TEL (@Electronic Components) price change was +1.71% for the same time period.
The average weekly price growth across all stocks in the @Electronic Components industry was -2.56%. For the same industry, the average monthly price growth was -17.20%, and the average quarterly price growth was -14.53%.
Reported Earning Dates
CTS is expected to report earnings on Feb 09, 2027.
TEL is expected to report earnings on Jan 27, 2027.
Industries' Descriptions
@Electronic Components (-2.56% weekly)The Electronic Components industry produces electronic equipment for industries and consumer electronics products, such as mobile devices, televisions, and circuit boards. TE Connectivity Ltd, for example, is a company that designs and manufactures connectivity and sensor products for harsh environments in various industries, such as automotive, industrial equipment, aerospace, and oil & gas. Another major player, Corning Inc., makes advanced optics including end-to-end fiber and wireless solutions for communications networks along with various other technologies catering to industrial and scientific applications.
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CTS and
Correlation & Price change
A.I.dvisor indicates that over the last year, CTS has been closely correlated with BHE. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if CTS jumps, then BHE could also see price increases.
| Ticker / NAME | Correlation To CTS | 1D Price Change % | ||
|---|---|---|---|---|
| CTS | 100% | +2.60% | ||
| BHE - CTS | 70% Closely correlated | +0.47% | ||
| PLXS - CTS | 63% Loosely correlated | +0.70% | ||
| LFUS - CTS | 61% Loosely correlated | +0.37% | ||
| VSH - CTS | 57% Loosely correlated | -4.56% | ||
| ROG - CTS | 55% Loosely correlated | -3.53% | ||
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TEL and
Correlation & Price change
A.I.dvisor indicates that over the last year, TEL has been closely correlated with APH. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is a high statistical probability that if TEL jumps, then APH could also see price increases.