PC Connection, Inc. (CNXN) vs Insight Enterprises, Inc. (NSIT)

PC Connection, Inc. and Insight Enterprises, Inc. are both Electronics & Computer Distribution companies. Insight Enterprises, Inc. is the larger, with a market value of $4.5B against $2.0B — 2.2× the size. PC Connection, Inc. trades at the lower P/E: 19.5× against 26.5×. PC Connection, Inc. grew revenue faster over the last twelve months: 9.53% against 9.02%. PC Connection, Inc. has the higher net margin (3.25% vs 2.01%) and the higher return on invested capital (12.5% vs 8.58%). Across the 21 metrics below, PC Connection, Inc. leads on 14 and Insight Enterprises, Inc. on 7.

Valuation

Metric CNXN NSIT Electronics & Computer Distribution median
P/E 19.50 26.46 13.29
P/S 0.63 0.51 0.38
P/B 2.04 2.96 1.58
Price to free cash flow n/m 16.42 17.66
EV/EBITDA 11.91 11.83 10.46
EV/Sales 0.52 0.64 0.33
Earnings yield 5.13% 3.78% 6.77%
Free cash flow yield (1.08%) 6.09% 2.07%

Profitability

Metric CNXN NSIT Electronics & Computer Distribution median
Gross margin 18.64% 22.02% 14.23%
Operating margin 4.05% 4.07% 2.99%
Net margin 3.25% 2.01% 1.99%
Free cash flow margin (0.65%) 3.13% 0.71%
Return on equity 10.89% 11.54% 9.15%
Return on assets 7.27% 1.82% 3.52%
Return on invested capital 12.52% 8.58% 8.25%

Growth

Metric CNXN NSIT Electronics & Computer Distribution median
Revenue growth (TTM) 9.53% 9.02% 14.77%
EPS growth (last fiscal year) (0.61%) (25.80%) 17.81%
Revenue growth, 5-year CAGR 2.09% (0.22%) 1.79%
Net income growth, 5-year CAGR 8.47% (1.84%) 4.24%

Health

Metric CNXN NSIT Electronics & Computer Distribution median
Debt to equity 0.00 0.96 0.37
Current ratio 2.72 1.19 1.39
Net debt to EBITDA (3.65) 2.25 1.23

Dividend

Metric CNXN NSIT Electronics & Computer Distribution median
Dividend yield 0.95% — 0.95%
Payout ratio 0.19 — 0.19

Size

Metric CNXN NSIT Electronics & Computer Distribution median
Market cap 2.01b 4.48b 1.46b

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