Arrow Electronics, Inc. (ARW) vs PC Connection, Inc. (CNXN)

Arrow Electronics, Inc. and PC Connection, Inc. are both Electronics & Computer Distribution companies. Arrow Electronics, Inc. is the larger, with a market value of $11.2B against $2.3B — 4.9× the size. Arrow Electronics, Inc. trades at the lower P/E: 13.6× against 23.6×. Arrow Electronics, Inc. grew revenue faster over the last twelve months: 26.1% against 3.23%. PC Connection, Inc. has the higher net margin (3.21% vs 2.26%) and the higher return on invested capital (12.0% vs 8.41%). Across the 22 metrics below, Arrow Electronics, Inc. leads on 12 and PC Connection, Inc. on 10.

Valuation

Metric ARW CNXN Electronics & Computer Distribution median
P/E 13.59 23.57 16.80
P/S 0.31 0.75 0.48
P/B 1.56 2.37 1.83
Price to free cash flow 13.34 67.97 13.78
EV/EBITDA 9.44 14.81 10.55
EV/Sales 0.36 0.64 0.40
Earnings yield 7.36% 4.24% 5.24%
Free cash flow yield 7.50% 1.47% 3.11%

Profitability

Metric ARW CNXN Electronics & Computer Distribution median
Gross margin 11.30% 18.89% 14.67%
Operating margin 3.37% 3.92% 2.89%
Net margin 2.26% 3.21% 2.35%
Free cash flow margin 2.30% 1.14% 1.72%
Return on equity 12.03% 10.43% 9.56%
Return on assets 2.59% 7.11% 3.10%
Return on invested capital 8.41% 11.96% 7.54%

Growth

Metric ARW CNXN Electronics & Computer Distribution median
Revenue growth (TTM) 26.05% 3.23% 6.09%
EPS growth (last fiscal year) 49.93% (0.61%) 17.81%
Revenue growth, 5-year CAGR 1.48% 2.09% 1.79%
Net income growth, 5-year CAGR (0.45%) 8.47% 4.24%

Health

Metric ARW CNXN Electronics & Computer Distribution median
Debt to equity 0.31 0.00 0.24
Current ratio 1.22 2.88 1.40
Net debt to EBITDA 2.81 (3.65) 1.23

Dividend

Metric ARW CNXN Electronics & Computer Distribution median
Dividend yield — 0.84% 0.96%
Payout ratio — 0.20 0.20

Size

Metric ARW CNXN Electronics & Computer Distribution median
Market cap 11.21b 2.29b 1.76b

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