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 $11.6B against $597.2M — 19.4× the size. Arrow Electronics, Inc. trades at the lower P/E: 14.7× against 28.4×. 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, Climb Global Solutions, Inc. leads on 13 and Arrow Electronics, Inc. on 9.

Valuation

Metric ARW CLMB Electronics & Computer Distribution median
P/E 14.74 28.39 18.73
P/S 0.33 0.81 0.47
P/B 1.69 4.63 2.01
Price to free cash flow 14.47 14.12 14.47
EV/EBITDA 10.12 14.37 11.04
EV/Sales 0.39 0.73 0.39
Earnings yield 6.78% 3.52% 4.83%
Free cash flow yield 6.91% 7.08% 3.03%

Profitability

Metric ARW CLMB Electronics & Computer Distribution median
Gross margin 11.30% 15.77% 14.67%
Operating margin 3.37% 3.90% 2.84%
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% 2.94%
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% —
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 — 1.17% 1.60%
Payout ratio 0.00 0.26 0.06

Size

Metric ARW CLMB Electronics & Computer Distribution median
Market cap 11.57b 597.15m 1.71b

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