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 $9.0B against $6.3B — 1.4× the size. Arrow Electronics, Inc. trades at the lower P/E: 9.1× against 11.5×. Avnet, Inc. grew revenue faster over the last twelve months: 44.3% against 32.5%. Arrow Electronics, Inc. has the higher net margin (2.62% vs 1.74%) and the higher return on invested capital (9.33% vs 7.91%). Across the 21 metrics below, Arrow Electronics, Inc. leads on 13 and Avnet, Inc. on 8.

Valuation

Metric ARW AVT Electronics & Computer Distribution median
P/E 9.06 11.50 13.29
P/S 0.24 0.20 0.38
P/B 1.27 1.30 1.58
Price to free cash flow 13.75 n/m 17.66
EV/EBITDA 7.13 11.14 10.46
EV/Sales 0.30 0.30 0.33
Earnings yield 11.04% 8.70% 6.77%
Free cash flow yield 7.27% (16.16%) 2.07%

Profitability

Metric ARW AVT Electronics & Computer Distribution median
Gross margin 11.26% 10.30% 14.23%
Operating margin 3.76% 3.26% 2.99%
Net margin 2.62% 1.74% 1.99%
Free cash flow margin 1.72% (3.24%) 0.71%
Return on equity 14.86% 0.00% 9.15%
Return on assets 2.93% 3.66% 3.52%
Return on invested capital 9.33% 7.91% 8.25%

Growth

Metric ARW AVT Electronics & Computer Distribution median
Revenue growth (TTM) 32.46% 44.26% 14.77%
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 0.38 0.63 0.37
Current ratio 1.20 1.73 1.39
Net debt to EBITDA 2.81 2.70 1.23

Dividend

Metric ARW AVT Electronics & Computer Distribution median
Dividend yield — 1.79% 0.95%
Payout ratio — 0.21 0.19

Size

Metric ARW AVT Electronics & Computer Distribution median
Market cap 9.01b 6.30b 1.46b

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