PC Connection, Inc. (CNXN) vs ICZOOM Group Inc. (IZM)

PC Connection, Inc. and ICZOOM Group Inc. are both Electronics & Computer Distribution companies. PC Connection, Inc. is the larger, with a market value of $2.3B against $2.0M — 1128.1× the size. ICZOOM Group Inc. trades at the lower P/E: 1.9× against 23.6×. PC Connection, Inc. has the higher net margin (3.21% vs 0.86%) and the higher return on invested capital (12.0% vs 0.00%). Across the 18 metrics below, PC Connection, Inc. leads on 13 and ICZOOM Group Inc. on 5.

Valuation

Metric CNXN IZM Electronics & Computer Distribution median
P/E 23.57 1.90 16.80
P/S 0.75 n/m 0.48
P/B 2.37 n/m 1.83
Price to free cash flow 67.97 n/m 13.78
EV/EBITDA 14.81 0.29 10.55
EV/Sales 0.64 0.00 0.40
Earnings yield 4.24% 52.50% 5.24%
Free cash flow yield 1.47% 0.00% 3.11%

Profitability

Metric CNXN IZM Electronics & Computer Distribution median
Gross margin 18.89% 2.56% 14.67%
Operating margin 3.92% 0.00% 2.89%
Net margin 3.21% 0.86% 2.35%
Free cash flow margin 1.14% 0.00% 1.72%
Return on equity 10.43% 0.00% 9.56%
Return on assets 7.11% 0.00% 3.10%
Return on invested capital 11.96% 0.00% 7.54%

Growth

Metric CNXN IZM Electronics & Computer Distribution median
Revenue growth (TTM) 3.23% — 6.09%
EPS growth (last fiscal year) (0.61%) 150.00% 17.81%
Revenue growth, 5-year CAGR 2.09% (7.71%) 1.79%
Net income growth, 5-year CAGR 8.47% (14.63%) 4.24%

Health

Metric CNXN IZM Electronics & Computer Distribution median
Debt to equity 0.00 0.64 0.24
Current ratio 2.88 1.58 1.40
Net debt to EBITDA (3.65) 1.27 1.23

Dividend

Metric CNXN IZM Electronics & Computer Distribution median
Dividend yield 0.84% — 0.96%
Payout ratio 0.20 — 0.20

Size

Metric CNXN IZM Electronics & Computer Distribution median
Market cap 2.29b 2.03m 1.76b

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