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 $9.0B against $2.0B — 4.5× the size. Arrow Electronics, Inc. trades at the lower P/E: 9.1× against 19.5×. Arrow Electronics, Inc. grew revenue faster over the last twelve months: 32.5% against 9.53%. PC Connection, Inc. has the higher net margin (3.25% vs 2.62%) and the higher return on invested capital (12.5% vs 9.33%). Across the 21 metrics below, Arrow Electronics, Inc. leads on 11 and PC Connection, Inc. on 10.

Valuation

Metric ARW CNXN Electronics & Computer Distribution median
P/E 9.06 19.50 13.29
P/S 0.24 0.63 0.38
P/B 1.27 2.04 1.58
Price to free cash flow 13.75 n/m 17.66
EV/EBITDA 7.13 11.91 10.46
EV/Sales 0.30 0.52 0.33
Earnings yield 11.04% 5.13% 6.77%
Free cash flow yield 7.27% (1.08%) 2.07%

Profitability

Metric ARW CNXN Electronics & Computer Distribution median
Gross margin 11.26% 18.64% 14.23%
Operating margin 3.76% 4.05% 2.99%
Net margin 2.62% 3.25% 1.99%
Free cash flow margin 1.72% (0.65%) 0.71%
Return on equity 14.86% 10.89% 9.15%
Return on assets 2.93% 7.27% 3.52%
Return on invested capital 9.33% 12.52% 8.25%

Growth

Metric ARW CNXN Electronics & Computer Distribution median
Revenue growth (TTM) 32.46% 9.53% 14.77%
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 0.38 0.00 0.37
Current ratio 1.20 2.72 1.39
Net debt to EBITDA 2.81 (3.65) 1.23

Dividend

Metric ARW CNXN Electronics & Computer Distribution median
Dividend yield — 0.95% 0.95%
Payout ratio — 0.19 0.19

Size

Metric ARW CNXN Electronics & Computer Distribution median
Market cap 9.01b 2.01b 1.46b

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