Head-To-Head Analysis: PC Connection (CNXN) vs. Ingram Micro (IM)
PC Connection (NASDAQ: CNXN) and Ingram Micro (NYSE:IM) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, dividends, earnings and risk.
Insider and Institutional Ownership
39.3% of PC Connection shares are held by institutional investors. Comparatively, 82.4% of Ingram Micro shares are held by institutional investors. 57.9% of PC Connection shares are held by company insiders. Comparatively, 3.6% of Ingram Micro shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
PC Connection has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Ingram Micro has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for PC Connection and Ingram Micro, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PC Connection currently has a consensus target price of $32.00, suggesting a potential upside of 20.94%. Given PC Connection’s stronger consensus rating and higher probable upside, equities research analysts clearly believe PC Connection is more favorable than Ingram Micro.
Valuation and Earnings
This table compares PC Connection and Ingram Micro’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PC Connection||$2.79 billion||0.25||$88.18 million||$1.81||14.62|
PC Connection has higher revenue and earnings than Ingram Micro. PC Connection is trading at a lower price-to-earnings ratio than Ingram Micro, indicating that it is currently the more affordable of the two stocks.
This table compares PC Connection and Ingram Micro’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PC Connection beats Ingram Micro on 9 of the 11 factors compared between the two stocks.
PC Connection Company Profile
PC Connection, Inc. is a provider of a range of information technology (IT) solutions. The Company conducts its business operations through three business segments: small- to medium-sized businesses (SMB), Large Account and Public Sector. The Company enables customers to design, enable, manage and service their IT environments. The Company’s IT products include computer systems, software and peripheral equipment, networking communications, and other products and accessories that the Company purchases from manufacturers, distributors and other suppliers. The Company also offers services involving design, configuration and implementation of IT solutions. The Company markets its products and services through its Websites, including www.connection.com, www.connection.com/enterprise, www.connection.com/publicsector, and www.macconnection.com. It uses a combination of outbound telemarketing, including some on-site sales solicitation by business development managers.
Ingram Micro Company Profile
Ingram Micro Inc. (Ingram Micro) is engaged in the distribution of information technology (IT) products, supply chain services and mobile device lifecycle services around the world. The Company distributes and markets technology products all over the world from the industry’s computer hardware suppliers, mobility hardware suppliers, software publishers, consumer electronics (CE), automatic identification and data capture (AIDC)/point-of-sale (POS), and physical security products. It has operations in approximately 45 countries. The products include IT peripherals, digital signage products, CE products, AIDC/POS products, physical security products, services provided by third parties and resold by the Company, components, and supplies and accessories. The Company’s distribution services enables its suppliers to reach base of resellers, while providing resellers with multi-vendor solutions, integration services, electronic commerce tools, technical support and inventory management.
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