Arrow Electronics, Inc. (ARW) vs Avnet, Inc. (AVT)

Arrow Electronics, Inc. and Avnet, Inc. are both Electronics & Computer Distribution companies. Arrow Electronics, Inc. is the larger, with a market value of $11.2B against $7.6B — 1.5× the size. Arrow Electronics, Inc. trades at the lower P/E: 13.6× against 22.1×. Arrow Electronics, Inc. grew revenue faster over the last twelve months: 26.1% against 24.5%. Arrow Electronics, Inc. has the higher net margin (2.26% vs 1.21%) and the higher return on invested capital (8.41% vs 6.17%). Across the 21 metrics below, Arrow Electronics, Inc. leads on 14 and Avnet, Inc. on 7.

Valuation

Metric ARW AVT Electronics & Computer Distribution median
P/E 13.59 22.11 16.80
P/S 0.31 0.27 0.48
P/B 1.56 1.47 1.83
Price to free cash flow 13.34 n/m 13.78
EV/EBITDA 9.44 11.31 10.55
EV/Sales 0.36 0.35 0.40
Earnings yield 7.36% 4.52% 5.24%
Free cash flow yield 7.50% (4.79%) 3.11%

Profitability

Metric ARW AVT Electronics & Computer Distribution median
Gross margin 11.30% 10.43% 14.67%
Operating margin 3.37% 2.62% 2.89%
Net margin 2.26% 1.21% 2.35%
Free cash flow margin 2.30% (1.28%) 1.72%
Return on equity 12.03% 6.67% 9.56%
Return on assets 2.59% 2.43% 3.10%
Return on invested capital 8.41% 6.17% 7.54%

Growth

Metric ARW AVT Electronics & Computer Distribution median
Revenue growth (TTM) 26.05% 24.47% 6.09%
EPS growth (last fiscal year) 49.93% 45.82% 17.81%
Revenue growth, 5-year CAGR 1.48% 7.18% 1.79%
Net income growth, 5-year CAGR (0.45%) 11.61% 4.24%

Health

Metric ARW AVT Electronics & Computer Distribution median
Debt to equity 0.31 0.49 0.24
Current ratio 1.22 1.78 1.40
Net debt to EBITDA 2.81 2.70 1.23

Dividend

Metric ARW AVT Electronics & Computer Distribution median
Dividend yield — 1.58% 0.96%
Payout ratio — 0.36 0.20

Size

Metric ARW AVT Electronics & Computer Distribution median
Market cap 11.21b 7.64b 1.76b

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