WallStSmart

Arrow Electronics Inc (ARW)vsAvnet Inc (AVT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arrow Electronics Inc generates 24% more annual revenue ($30.85B vs $24.96B). ARW leads profitability with a 1.9% profit margin vs 0.9%. ARW appears more attractively valued with a PEG of 0.95. ARW earns a higher WallStSmart Score of 69/100 (B-).

ARW

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 4.5Value: 8.7Quality: 5.5
Piotroski: 3/9Altman Z: 1.94

AVT

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 5.3Quality: 6.8
Piotroski: 3/9Altman Z: 3.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARWUndervalued (+68.0%)

Margin of Safety

+68.0%

Fair Value

$492.65

Current Price

$194.95

$297.70 discount

UndervaluedFair: $492.65Overvalued
AVTUndervalued (+73.8%)

Margin of Safety

+73.8%

Fair Value

$253.22

Current Price

$82.09

$171.13 discount

UndervaluedFair: $253.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARW5 strengths · Avg: 8.4/10
EPS GrowthGrowth
100.5%10/10

Earnings expanding 100.5% YoY

PEG RatioValuation
0.958/10

Growing faster than its price suggests

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

AVT3 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
33.9%10/10

Revenue surging 33.9% year-over-year

Altman Z-ScoreHealth
3.4010/10

Safe zone — low bankruptcy risk

Areas to Watch

ARW4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.944/10

Grey zone — moderate risk

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

AVT4 concerns · Avg: 3.3/10
P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.3%3/10

ROE of 4.3% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
3.1%3/10

Operating margin of 3.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARW

The strongest argument for ARW centers on EPS Growth, PEG Ratio, P/E Ratio. Revenue growth of 20.1% demonstrates continued momentum. PEG of 0.95 suggests the stock is reasonably priced for its growth.

Bull Case : AVT

The strongest argument for AVT centers on Price/Book, Revenue Growth, Altman Z-Score. Revenue growth of 33.9% demonstrates continued momentum.

Bear Case : ARW

The primary concerns for ARW are Altman Z-Score, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.

Bear Case : AVT

The primary concerns for AVT are P/E Ratio, Return on Equity, Profit Margin. Thin 0.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

ARW profiles as a growth stock while AVT is a hypergrowth play — different risk/reward profiles.

ARW carries more volatility with a beta of 1.17 — expect wider price swings.

AVT is growing revenue faster at 33.9% — sustainability is the question.

ARW generates stronger free cash flow (173M), providing more financial flexibility.

Bottom Line

ARW scores higher overall (69/100 vs 59/100) and 20.1% revenue growth. AVT offers better value entry with a 73.8% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arrow Electronics Inc

TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Centennial, Colorado.

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Avnet Inc

TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA

Avnet, Inc., a technology solutions company, markets, sells and distributes electronic components. The company is headquartered in Phoenix, Arizona.

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