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 $11.6B against $2.3B — 5.1× the size. Arrow Electronics, Inc. trades at the lower P/E: 14.7× 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 14.74 23.57 18.73
P/S 0.33 0.75 0.47
P/B 1.69 2.37 2.01
Price to free cash flow 14.47 67.97 14.47
EV/EBITDA 10.12 14.82 11.04
EV/Sales 0.39 0.64 0.39
Earnings yield 6.78% 4.24% 4.83%
Free cash flow yield 6.91% 1.47% 3.03%

Profitability

Metric ARW CNXN Electronics & Computer Distribution median
Gross margin 11.30% 18.89% 14.67%
Operating margin 3.37% 3.92% 2.84%
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% 2.94%
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%) —
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 — 0.48% 1.60%
Payout ratio 0.00 0.06 0.06

Size

Metric ARW CNXN Electronics & Computer Distribution median
Market cap 11.57b 2.25b 1.71b

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