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Arrow Electronics, Inc. (ARW) vs ScanSource, Inc. (SCSC)

Arrow Electronics, Inc. and ScanSource, Inc. are both Electronics & Computer Distribution companies. Arrow Electronics, Inc. is the larger, with a market value of $11.2B against $1.2B — 9.2× the size. Arrow Electronics, Inc. trades at the lower P/E: 13.6× against 16.2×. Arrow Electronics, Inc. grew revenue faster over the last twelve months: 26.1% against 6.09%. ScanSource, Inc. has the higher net margin (2.44% vs 2.26%) and the lower return on invested capital (6.67% vs 8.41%). Across the 22 metrics below, Arrow Electronics, Inc. leads on 11 and ScanSource, Inc. on 11.

Valuation

Metric ARW SCSC Electronics & Computer Distribution median
P/E 13.59 16.22 16.80
P/S 0.31 0.40 0.48
P/B 1.56 1.41 1.83
Price to free cash flow 13.34 11.27 13.78
EV/EBITDA 9.44 10.55 10.55
EV/Sales 0.36 0.40 0.40
Earnings yield 7.36% 6.16% 5.24%
Free cash flow yield 7.50% 8.87% 3.11%

Profitability

Metric ARW SCSC Electronics & Computer Distribution median
Gross margin 11.30% 13.56% 14.67%
Operating margin 3.37% 3.06% 2.89%
Net margin 2.26% 2.44% 2.35%
Free cash flow margin 2.30% 3.53% 1.72%
Return on equity 12.03% 8.68% 9.56%
Return on assets 2.59% 4.24% 3.10%
Return on invested capital 8.41% 6.67% 7.54%

Growth

Metric ARW SCSC Electronics & Computer Distribution median
Revenue growth (TTM) 26.05% 6.09% 6.09%
EPS growth (last fiscal year) 49.93% 21.33% 17.81%
Revenue growth, 5-year CAGR 1.48% 0.47% 1.79%
Net income growth, 5-year CAGR (0.45%) 48.85% 4.24%

Health

Metric ARW SCSC Electronics & Computer Distribution median
Debt to equity 0.31 0.11 0.24
Current ratio 1.22 1.76 1.40
Net debt to EBITDA 2.81 0.11 1.23

Dividend

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

Size

Metric ARW SCSC Electronics & Computer Distribution median
Market cap 11.21b 1.22b 1.76b

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