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 $4.7B against $2.3B — 2.1× the size. Insight Enterprises, Inc. trades at the lower P/E: 23.2× against 23.6×. PC Connection, Inc. grew revenue faster over the last twelve months: 3.23% against 2.68%. PC Connection, Inc. has the higher net margin (3.21% vs 2.45%) and the higher return on invested capital (12.0% vs 8.99%). Across the 22 metrics below, PC Connection, Inc. leads on 12 and Insight Enterprises, Inc. on 10.

Valuation

Metric CNXN NSIT Electronics & Computer Distribution median
P/E 23.57 23.22 18.73
P/S 0.75 0.56 0.47
P/B 2.37 2.98 2.01
Price to free cash flow 67.97 11.81 14.47
EV/EBITDA 14.82 11.62 11.04
EV/Sales 0.64 0.69 0.39
Earnings yield 4.24% 4.31% 4.83%
Free cash flow yield 1.47% 8.47% 3.03%

Profitability

Metric CNXN NSIT Electronics & Computer Distribution median
Gross margin 18.89% 22.10% 14.67%
Operating margin 3.92% 4.56% 2.84%
Net margin 3.21% 2.45% 2.35%
Free cash flow margin 1.14% 4.72% 1.72%
Return on equity 10.43% 13.11% 9.56%
Return on assets 7.11% 2.09% 2.94%
Return on invested capital 11.96% 8.99% 7.54%

Growth

Metric CNXN NSIT Electronics & Computer Distribution median
Revenue growth (TTM) 3.23% 2.68% 6.09%
EPS growth (last fiscal year) (0.61%) (25.80%) —
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 0.92 0.24
Current ratio 2.88 1.18 1.40
Net debt to EBITDA (3.65) 2.25 1.23

Dividend

Metric CNXN NSIT Electronics & Computer Distribution median
Dividend yield 0.48% — 1.60%
Payout ratio 0.06 0.00 0.06

Size

Metric CNXN NSIT Electronics & Computer Distribution median
Market cap 2.25b 4.69b 1.71b

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