Arrow Electronics, Inc. (ARW) vs Climb Global Solutions, Inc. (CLMB)

Arrow Electronics, Inc. and Climb Global Solutions, Inc. are both Electronics & Computer Distribution companies. Arrow Electronics, Inc. is the larger, with a market value of $11.2B against $614.7M — 18.2× the size. Arrow Electronics, Inc. trades at the lower P/E: 13.6× against 28.6×. Arrow Electronics, Inc. grew revenue faster over the last twelve months: 26.1% against 23.1%. Climb Global Solutions, Inc. has the higher net margin (2.85% vs 2.26%) and the higher return on invested capital (25.3% vs 8.41%). Across the 22 metrics below, Arrow Electronics, Inc. leads on 11 and Climb Global Solutions, Inc. on 11.

Valuation

Metric ARW CLMB Electronics & Computer Distribution median
P/E 13.59 28.57 16.80
P/S 0.31 0.82 0.48
P/B 1.56 4.66 1.83
Price to free cash flow 13.34 14.22 13.78
EV/EBITDA 9.44 14.48 10.55
EV/Sales 0.36 0.74 0.40
Earnings yield 7.36% 3.50% 5.24%
Free cash flow yield 7.50% 7.03% 3.11%

Profitability

Metric ARW CLMB Electronics & Computer Distribution median
Gross margin 11.30% 15.77% 14.67%
Operating margin 3.37% 3.90% 2.89%
Net margin 2.26% 2.85% 2.35%
Free cash flow margin 2.30% 5.76% 1.72%
Return on equity 12.03% 17.62% 9.56%
Return on assets 2.59% 4.59% 3.10%
Return on invested capital 8.41% 25.32% 7.54%

Growth

Metric ARW CLMB Electronics & Computer Distribution median
Revenue growth (TTM) 26.05% 23.05% 6.09%
EPS growth (last fiscal year) 49.93% 14.29% 17.81%
Revenue growth, 5-year CAGR 1.48% 21.00% 1.79%
Net income growth, 5-year CAGR (0.45%) 37.05% 4.24%

Health

Metric ARW CLMB Electronics & Computer Distribution median
Debt to equity 0.31 0.00 0.24
Current ratio 1.22 1.13 1.40
Net debt to EBITDA 2.81 (0.97) 1.23

Dividend

Metric ARW CLMB Electronics & Computer Distribution median
Dividend yield — 0.13% 0.96%
Payout ratio — 0.04 0.20

Size

Metric ARW CLMB Electronics & Computer Distribution median
Market cap 11.21b 614.68m 1.76b

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