PC Connection, Inc. (CNXN) vs TD SYNNEX Corporation (SNX)

PC Connection, Inc. and TD SYNNEX Corporation are both Electronics & Computer Distribution companies. TD SYNNEX Corporation is the larger, with a market value of $21.2B against $2.3B — 9.4× the size. TD SYNNEX Corporation trades at the lower P/E: 18.6× against 23.6×. TD SYNNEX Corporation grew revenue faster over the last twelve months: 16.3% against 3.23%. PC Connection, Inc. has the higher net margin (3.21% vs 1.63%) and the higher return on invested capital (12.0% vs 8.90%). Both pay a dividend; TD SYNNEX Corporation yields more (1.60% vs 0.48%). Across the 23 metrics below, TD SYNNEX Corporation leads on 14 and PC Connection, Inc. on 9.

Valuation

Metric CNXN SNX Electronics & Computer Distribution median
P/E 23.57 18.65 18.73
P/S 0.75 0.30 0.47
P/B 2.37 2.32 2.01
Price to free cash flow 67.97 55.53 14.47
EV/EBITDA 14.82 11.04 11.04
EV/Sales 0.64 0.35 0.39
Earnings yield 4.24% 5.36% 4.83%
Free cash flow yield 1.47% 1.80% 3.03%

Profitability

Metric CNXN SNX Electronics & Computer Distribution median
Gross margin 18.89% 7.05% 14.67%
Operating margin 3.92% 2.57% 2.84%
Net margin 3.21% 1.63% 2.35%
Free cash flow margin 1.14% 0.54% 1.72%
Return on equity 10.43% 13.14% 9.56%
Return on assets 7.11% 3.29% 2.94%
Return on invested capital 11.96% 8.90% 7.54%

Growth

Metric CNXN SNX Electronics & Computer Distribution median
Revenue growth (TTM) 3.23% 16.26% 6.09%
EPS growth (last fiscal year) (0.61%) 25.16% —
Revenue growth, 5-year CAGR 2.09% 25.63% 1.79%
Net income growth, 5-year CAGR 8.47% 9.36% 4.24%

Health

Metric CNXN SNX Electronics & Computer Distribution median
Debt to equity 0.00 0.53 0.24
Current ratio 2.88 1.20 1.40
Net debt to EBITDA (3.65) 1.19 1.23

Dividend

Metric CNXN SNX Electronics & Computer Distribution median
Dividend yield 0.48% 1.60% 1.60%
Payout ratio 0.06 0.19 0.06

Size

Metric CNXN SNX Electronics & Computer Distribution median
Market cap 2.25b 21.19b 1.71b

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