Head-To-Head Comparison: Dell (DELL) vs. PC Connection (CNXN)

Dell (NASDAQ: DELL) and PC Connection (NASDAQ:CNXN) are both computer hardware – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Dell and PC Connection’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dell N/A N/A N/A
PC Connection 1.63% 10.84% 7.06%

Valuation and Earnings

This table compares Dell and PC Connection’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dell N/A N/A N/A $5.91 N/A
PC Connection $2.69 billion 0.26 $48.11 million $1.75 15.05

PC Connection has higher revenue and earnings than Dell. Dell is trading at a lower price-to-earnings ratio than PC Connection, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Dell and PC Connection, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dell 0 0 0 0 N/A
PC Connection 0 0 1 0 3.00

PC Connection has a consensus price target of $33.00, indicating a potential upside of 25.28%.

Institutional and Insider Ownership

41.1% of PC Connection shares are owned by institutional investors. 57.3% of PC Connection shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

PC Connection beats Dell on 7 of the 8 factors compared between the two stocks.

Dell Company Profile

Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Dell is a holding company that conducts its business worldwide through its subsidiaries. The Company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. The Company’s Large Enterprise customers include global and national corporate businesses. Its Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. Its SMB segment is focused on helping small and medium-sized businesses by offering products, services, and solutions. Its Consumer segment is focused on delivering technology experience of entertainment, mobility, gaming, and design. In March 2014, the Company acquired StatSoft, a provider of advanced analytics solutions.

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.

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