The industrial sector is experiencing a digital transformation in the era of Industry 4.0, leading to increased productivity and efficiency. As businesses adopt these technologies, the need for more sophisticated and dependable industrial services continues to grow. The global Industry 4.0 market is projected to reach $482 billion by 2032, registering a CAGR of 20.7%.

Furthermore, the U.S. manufacturing sector adds $2.65 trillion to the nation’s economy, provides jobs for nearly 13 million Americans, and represents 10.3% of the country’s GDP. This strengthens the importance and the positive outlook for industrial stocks.

Against this backdrop, let’s compare two industrial stocks to analyze which is more resilient: TE Connectivity plc (TEL) and Mueller Industries, Inc. (MLI).

The Case for TE Connectivity plc Stock

With a $43.59 billion market cap, TE Connectivity plc (TEL) manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.

TEL’s stock has gained 12.9% over the past year to close the last trading session at $145.72.

The stock’s trailing-12-month EBIT margin of 18.53% is 246.4% higher than the industry average of 5.35%. Similarly, its 10.95% trailing-12-month ROTC is 249.3% above the industry average of 3.14%.

For the fiscal 2024 fourth quarter that ended September 27, TEL’s net sales increased marginally year-over-year to $4.07 billion. Its adjusted operating income grew 8% from the year-ago value to $755 million.

The company’s adjusted income from continuing operations increased by 5.5%, reaching $595 million, while adjusted EPS from continuing operations rose 9.6% to $1.95 compared to the same quarter last year.

Street expects TEL’s revenue and EPS for the fiscal 2025 first quarter ending December 2024 to increase 2.1% and 2.6% year-over-year to $3.91 billion and $1.89, respectively. Moreover, the company topped the consensus EPS estimates in all four trailing quarters.

TEL’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

The stock has a B grade for Momentum, Stability, Sentiment, Quality, and Value. TEL is ranked #2 out of 35 stocks in the B-rated Industrial – Manufacturing industry.

In addition to the POWR Ratings I’ve just highlighted, you can see TEL’s ratings for Growth here.

The Case for Mueller Industries, Inc. Stock

Valued at $9.34 billion by market cap, Mueller Industries, Inc. (MLI) manufactures and sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, South Korea, the Middle East, China, and Mexico. It operates through three segments: Piping Systems, Industrial Metals, and Climate. 

Shares of MLI have surged 80.3% over the past year but declined marginally over the past month to close the last trading session at $82.12.

In terms of the trailing-12-month CAPEX/Sales, MLI’s 1.84% is 34.8% lower than the 2.82% industry average. However, its 20.45% trailing-12-month gross profit margin is 97.8% higher than the 10.34% industry average.

MLI’s revenue increased 21.7% year-over-year to $997.83 million for the fiscal 2024 third quarter that ended September 28, 2024. Moreover, the company’s net income attributable to MLI came in at $168.70 million and $1.48 per share.

For the fourth quarter ended December 2024, MLI’s revenue is expected to increase 21.9% year-over-year to $893 million. However, its EPS for the ongoing quarter is expected to decrease 9.4% year-over-year to $1.12. The company surpassed revenue and EPS estimates in each of the trailing four quarters.

MLI’s fundamentals are reflected in its POWR Ratings. The stock has an overall C rating, translating to Neutral in our proprietary rating system.

MLI has a C grade for Momentum, Growth, and Stability. It is ranked #23 in the same industry.

Click here for the additional POWR Ratings for MLI (Value, Sentiment, and Quality).

TE Connectivity (TEL) vs. Mueller Industries (MLI): Which Industrial Stock Is More Resilient?

The U.S. industrial manufacturing sector is expected to maintain steady growth, driven by robust demand, technological advancements, and infrastructure investments. With significant contributions to the economy and employment, the outlook for the industry remains positive, supporting long-term opportunities for industrial stocks.

Leading industrial companies TEL and MLI stand to capitalize on the optimistic industry outlook. However, TEL’s strong profitability might make it the better industrial stock pick.

Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Industrial – Manufacturing industry here.

What To Do Next?

Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >

TEL shares closed at $145.72 on Friday, up $2.03 (+1.41%). Year-to-date, TEL has gained 1.92%, versus a 1.96% rise in the benchmark S&P 500 index during the same period.

About the Author: Nidhi Agarwal

Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More...

More Resources for the Stocks in this Article