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 $9.0B against $918.0M — 9.8× the size. Arrow Electronics, Inc. trades at the lower P/E: 9.1× against 13.2×. Arrow Electronics, Inc. grew revenue faster over the last twelve months: 32.5% against 14.8%. Arrow Electronics, Inc. has the higher net margin (2.62% vs 1.96%) and the higher return on invested capital (9.33% vs 4.43%). Across the 22 metrics below, Arrow Electronics, Inc. leads on 15 and ScanSource, Inc. on 7.

Valuation

Metric ARW SCSC Electronics & Computer Distribution median
P/E 9.06 13.22 13.29
P/S 0.24 0.25 0.38
P/B 1.27 0.94 1.58
Price to free cash flow 13.75 17.66 17.66
EV/EBITDA 7.13 10.46 10.46
EV/Sales 0.30 0.33 0.33
Earnings yield 11.04% 7.56% 6.77%
Free cash flow yield 7.27% 5.66% 2.07%

Profitability

Metric ARW SCSC Electronics & Computer Distribution median
Gross margin 11.26% 12.96% 14.23%
Operating margin 3.76% 2.47% 2.99%
Net margin 2.62% 1.96% 1.99%
Free cash flow margin 1.72% 1.42% 0.71%
Return on equity 14.86% 7.40% 9.15%
Return on assets 2.93% 3.43% 3.52%
Return on invested capital 9.33% 4.43% 8.25%

Growth

Metric ARW SCSC Electronics & Computer Distribution median
Revenue growth (TTM) 32.46% 14.77% 14.77%
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 0.38 0.36 0.37
Current ratio 1.20 1.75 1.39
Net debt to EBITDA 2.81 0.11 1.23

Dividend

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

Size

Metric ARW SCSC Electronics & Computer Distribution median
Market cap 9.01b 917.98m 1.46b

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