NNBR vs TEL: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: TEL is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. NNBR and TEL share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined NNBR and TEL exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

NN, Inc. is a Charlotte, North Carolina based manufacturer of high-precision components and assemblies, with about 27 facilities, roughly 2,550 employees and 700+ customers across four continents. It reports two segments. Power Solutions (about $62 million of Q2 2026 sales, up ~40% year over year) makes stamped, plated and precision-machined electrical contacts and connectors used in grid equipment, data centers, defense electronics and medical devices. Mobile Solutions (about $67 million, up ~5%) makes precision parts for automotive fuel, braking, steering and electrification systems.

Full NNBR guide

TE Connectivity (NYSE: TEL) designs and manufactures connectors, sensors, and interconnect systems that move power and data through cars, factories, data centers, aircraft, appliances, and medical devices. It is the number one connector maker globally by revenue, ahead of Amphenol and Molex, and organizes its business primarily around two segments: Transportation Solutions (automotive, commercial vehicles, sensors) and Industrial Solutions (industrial equipment, energy, aerospace and defense, medical, and the fast-growing digital data networks unit that sells into AI data centers). The company is domiciled in Ireland and sells to essentially every major automaker and industrial and hyperscale customer.

Full TEL guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• NNBR drivers: Data center and electrical demand; New business wins converting to revenue.
• TEL drivers: AI data center connectivity; Vehicle electrification and content growth.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Shareholders have absorbed heavy dilution in 2026, with two PIPEs and a preferred-for-common exchange adding tens of millions of shares, and further raises cannot be ruled out. For TEL, tEL's largest markets, automotive and industrial, are cyclical, so a downturn in vehicle production or capital spending can pressure revenue and margins.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick NNBR if you believe its drivers more; TEL if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the NNBR and TEL guides.

NNBR. NN trades at under one times sales and, adding about $150 million of net debt at June 30, 2026, at roughly 8x to 9x the midpoint of 2026 adjusted EBITDA guidance. That is a discount to larger precision-component peers, reflecting GAAP losses, leverage and the auto exposure in Mobile Solutions. Share counts are moving quickly: the October placement left 93.7 million common shares outstanding, and counting the 4.8 million pre-funded warrants pushes the economic total near 98.6 million, so per-share figures from older sources can be misleading. The removal of the preferred also means common holders no longer rank behind a $122 million senior equity claim, which changes how the equity value should be read against earlier years.

TEL. TEL trades around $200 per share for a market cap near $59 billion, at roughly 20 times earnings, a valuation typical of a quality industrial compounder rather than a cheap cyclical. It generates strong free cash flow (around $1 billion in a recent quarter) and yields about 1.5 percent. The premium reflects record AI-driven orders and steady margin expansion.

Headline figures (approximate, October 2026): NNBR shows revenue (ttm) ~$456 million, adjusted ebitda (ttm) ~$57 million, 2026 guidance (sales / adj. ebitda) ~$470M to $490M / ~$58M to $68M, market cap ~$370 million (93.7 million shares at $3.95); TEL shows revenue (ttm) ~$17B, quarterly sales (recent) ~$4.5B, adjusted operating margin ~20%, market cap ~$59B.

NNBR and TEL are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined NNBR and TEL exposure against your real portfolio. It is not an investment adviser.