Dec 3, 2024, 12:00 AM
Dec 3, 2024, 12:00 AM

Amphenol outperforms Corning with higher growth rates

Highlights
  • Amphenol's revenue growth averaged 14.0% from 2020 to 2023, compared to Corning's 4.7%.
  • Amphenol boasts a higher operating margin of 21.3% versus Corning's 7.1%.
  • Given its strong financial metrics, Amphenol is expected to outperform Corning in the coming years.
Story

In a comparative analysis of Amphenol and Corning, it has been revealed that Amphenol is exhibiting stronger financial metrics and growth prospects in its respective markets. Operating in the electrical and electronic connectors sectors, Amphenol's revenue grew by an average annual rate of 14.0% from $8.6 billion in 2020 to $12.6 billion in 2023. In contrast, Corning's revenue growth was a modest 4.7%, rising from $11.3 billion to $12.6 billion over the same timeline. This stark difference in growth rates has raised questions about the sustainability and future trajectory of Corning, especially as it competes with a more rapidly growing Amphenol. Additionally, the profitability of these two companies is telling; while Corning's operating margin increased from 4.5% in 2020 to 7.1% in 2023, Amphenol saw a jump from 19.2% to 21.3%. Such figures are indicative of Amphenol's operational efficiency and strategic positioning in the market, particularly as it navigates challenging industry dynamics. Another differentiating factor is the market expectations surrounding future revenue growth. Analysts predict that Amphenol's revenue will continue to expand at a high-teens average rate in the coming years, contrasting sharply with the mid-single-digit growth anticipated for Corning. This disparity is compounded by the challenges Corning has faced, as evidenced by its inconsistent stock performance, particularly underperforming against the S&P 500 index in 2021 and 2023. Meanwhile, Amphenol has managed to outperform market averages consistently over the past three years. Ultimately, Amphenol's superior growth and profitability metrics position it as a potentially more favorable investment compared to Corning, leading analysts to favor it in their evaluations. Given these assessments, it appears that Amphenol holds the edge over Corning and is likely to continue this trend in the foreseeable future.

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