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 $11.6B against $1.2B — 9.9× the size. Arrow Electronics, Inc. trades at the lower P/E: 14.7× against 15.7×. 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 14.74 15.74 18.73
P/S 0.33 0.39 0.47
P/B 1.69 1.37 2.01
Price to free cash flow 14.47 10.94 14.47
EV/EBITDA 10.12 10.24 11.04
EV/Sales 0.39 0.39 0.39
Earnings yield 6.78% 6.35% 4.83%
Free cash flow yield 6.91% 9.14% 3.03%

Profitability

Metric ARW SCSC Electronics & Computer Distribution median
Gross margin 11.30% 13.56% 14.67%
Operating margin 3.37% 3.06% 2.84%
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% 2.94%
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% —
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 — — 1.60%
Payout ratio 0.00 0.00 0.06

Size

Metric ARW SCSC Electronics & Computer Distribution median
Market cap 11.57b 1.17b 1.71b

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