Avnet, Inc. (AVT) vs PC Connection, Inc. (CNXN)

Avnet, Inc. and PC Connection, Inc. are both Electronics & Computer Distribution companies. Avnet, Inc. is the larger, with a market value of $6.3B against $2.0B — 3.1× the size. Avnet, Inc. trades at the lower P/E: 11.5× against 19.5×. Avnet, Inc. grew revenue faster over the last twelve months: 44.3% against 9.53%. PC Connection, Inc. has the higher net margin (3.25% vs 1.74%) and the higher return on invested capital (12.5% vs 7.91%). Both pay a dividend; Avnet, Inc. yields more (1.79% vs 0.95%). Across the 22 metrics below, Avnet, Inc. leads on 11 and PC Connection, Inc. on 11.

Valuation

Metric AVT CNXN Electronics & Computer Distribution median
P/E 11.50 19.50 13.29
P/S 0.20 0.63 0.38
P/B 1.30 2.04 1.58
Price to free cash flow n/m n/m 17.66
EV/EBITDA 11.14 11.91 10.46
EV/Sales 0.30 0.52 0.33
Earnings yield 8.70% 5.13% 6.77%
Free cash flow yield (16.16%) (1.08%) 2.07%

Profitability

Metric AVT CNXN Electronics & Computer Distribution median
Gross margin 10.30% 18.64% 14.23%
Operating margin 3.26% 4.05% 2.99%
Net margin 1.74% 3.25% 1.99%
Free cash flow margin (3.24%) (0.65%) 0.71%
Return on equity 0.00% 10.89% 9.15%
Return on assets 3.66% 7.27% 3.52%
Return on invested capital 7.91% 12.52% 8.25%

Growth

Metric AVT CNXN Electronics & Computer Distribution median
Revenue growth (TTM) 44.26% 9.53% 14.77%
EPS growth (last fiscal year) 45.82% (0.61%) 17.81%
Revenue growth, 5-year CAGR 7.18% 2.09% 1.79%
Net income growth, 5-year CAGR 11.61% 8.47% 4.24%

Health

Metric AVT CNXN Electronics & Computer Distribution median
Debt to equity 0.63 0.00 0.37
Current ratio 1.73 2.72 1.39
Net debt to EBITDA 2.70 (3.65) 1.23

Dividend

Metric AVT CNXN Electronics & Computer Distribution median
Dividend yield 1.79% 0.95% 0.95%
Payout ratio 0.21 0.19 0.19

Size

Metric AVT CNXN Electronics & Computer Distribution median
Market cap 6.30b 2.01b 1.46b

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