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 $7.6B against $2.3B — 3.3× the size. Avnet, Inc. trades at the lower P/E: 22.1× against 23.6×. 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 (1.58% vs 0.84%). 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 22.11 23.57 16.80
P/S 0.27 0.75 0.48
P/B 1.47 2.37 1.83
Price to free cash flow n/m 67.97 13.78
EV/EBITDA 11.31 14.81 10.55
EV/Sales 0.35 0.64 0.40
Earnings yield 4.52% 4.24% 5.24%
Free cash flow yield (4.79%) 1.47% 3.11%

Profitability

Metric AVT CNXN Electronics & Computer Distribution median
Gross margin 10.43% 18.89% 14.67%
Operating margin 2.62% 3.92% 2.89%
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% 3.10%
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%) 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 0.49 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 1.58% 0.84% 0.96%
Payout ratio 0.36 0.20 0.20

Size

Metric AVT CNXN Electronics & Computer Distribution median
Market cap 7.64b 2.29b 1.76b

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