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 $8.3B against $2.3B — 3.7× the size. PC Connection, Inc. trades at the lower P/E: 23.6× against 25.3×. Avnet, Inc. grew revenue faster over the last twelve months: 24.5% against 3.23%. PC Connection, Inc. has the higher net margin (3.21% vs 1.21%) and the higher return on invested capital (12.0% vs 6.17%). Both pay a dividend; Avnet, Inc. yields more (2.77% vs 0.48%). Across the 22 metrics below, PC Connection, Inc. leads on 13 and Avnet, Inc. on 9.

Valuation

Metric AVT CNXN Electronics & Computer Distribution median
P/E 25.33 23.57 18.73
P/S 0.31 0.75 0.47
P/B 1.69 2.37 2.01
Price to free cash flow n/m 67.97 14.47
EV/EBITDA 12.56 14.82 11.04
EV/Sales 0.39 0.64 0.39
Earnings yield 3.95% 4.24% 4.83%
Free cash flow yield (4.19%) 1.47% 3.03%

Profitability

Metric AVT CNXN Electronics & Computer Distribution median
Gross margin 10.43% 18.89% 14.67%
Operating margin 2.62% 3.92% 2.84%
Net margin 1.21% 3.21% 2.35%
Free cash flow margin (1.28%) 1.14% 1.72%
Return on equity 6.67% 10.43% 9.56%
Return on assets 2.43% 7.11% 2.94%
Return on invested capital 6.17% 11.96% 7.54%

Growth

Metric AVT CNXN Electronics & Computer Distribution median
Revenue growth (TTM) 24.47% 3.23% 6.09%
EPS growth (last fiscal year) 45.82% (0.61%) —
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 0.49 0.00 0.24
Current ratio 1.78 2.88 1.40
Net debt to EBITDA 2.70 (3.65) 1.23

Dividend

Metric AVT CNXN Electronics & Computer Distribution median
Dividend yield 2.77% 0.48% 1.60%
Payout ratio 0.14 0.06 0.06

Size

Metric AVT CNXN Electronics & Computer Distribution median
Market cap 8.30b 2.25b 1.71b

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