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

Same yardstick, side by side (as of September 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: ST 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. ST 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 ST 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.

Sensata Technologies Holding plc is a global industrial technology company that designs and makes sensors, high-voltage protection, and electrical components used mainly in automotive, heavy-vehicle and off-road, industrial, and aerospace applications. It reports in two segments: Performance Sensing, which supplies sensors and high-voltage solutions for cars and heavy vehicles (things like tire-pressure monitoring, thermal management, electrical protection, and powertrain sensing) and made up roughly 70% of sales in fiscal 2024, and Sensing Solutions, which sells application-specific pressure, temperature, and position sensors plus motor protectors, high-voltage contactors, relays, and battery-management products into industrial and other markets. Because most of its revenue is tied to vehicle production, Sensata's results track global light-vehicle build rates and its ability to win content on new platforms far more than any one product line.

Full ST 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.

• ST drivers: Margin recovery and cost execution; Electrification content per vehicle.
• 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: The dominant risk is automotive cyclicality: with most revenue tied to vehicle production, a slowdown in global light-vehicle builds can pressure volumes, and prolonged softness tends to show up later as program churn and factory under-absorption. 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 ST 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 ST and TEL guides.

ST. Figures are approximate and tied to the asOf date; verify live numbers before acting. The trailing P/E near triple digits is misleading because it divides the price by earnings that were depressed by large 2024 and 2025 goodwill and restructuring charges, so the forward P/E around 12x is the more useful gauge. For a cyclical auto supplier, the valuation ultimately hinges on where vehicle production and margins sit in the cycle rather than on a single multiple.

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, July 2026): ST shows revenue (ttm) ~$3.7 billion (Q1 2026 was ~$934.8 million, up ~2.6% year over year), adjusted eps (q1 2026) ~$0.86 (GAAP EPS ~$0.59), net income (q1 2026) ~$87 million attributable to common shareholders, market cap ~$7 billion (mid-cap); TEL shows revenue (ttm) ~$17B, quarterly sales (recent) ~$4.5B, adjusted operating margin ~20%, market cap ~$59B.

ST 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 ST and TEL exposure against your real portfolio. It is not an investment adviser.