Arrow Electronics Inc (ARW)vsScanSource Inc (SCSC)
ARW
Arrow Electronics Inc
$219.10
-0.10%
TECHNOLOGY · Cap: $11.16B
SCSC
ScanSource Inc
$57.75
+0.80%
TECHNOLOGY · Cap: $1.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Arrow Electronics Inc generates 1014% more annual revenue ($35.92B vs $3.23B). SCSC leads profitability with a 2.4% profit margin vs 2.3%. SCSC appears more attractively valued with a PEG of 0.79. ARW earns a higher WallStSmart Score of 75/100 (B).
ARW
Strong Buy75
out of 100
Grade: B
SCSC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.1%
Fair Value
$90.63
Current Price
$219.10
$128.47 premium
Margin of Safety
+8.4%
Fair Value
$37.84
Current Price
$57.75
$19.91 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 31.8% year-over-year
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 46.5% YoY
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
17.3% revenue growth
Earnings expanding 41.3% YoY
Areas to Watch
Grey zone — moderate risk
2.3% margin — thin
Operating margin of 4.0%
Weak financial health signals
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 3.5%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ARW
The strongest argument for ARW centers on Revenue Growth, PEG Ratio, P/E Ratio. Revenue growth of 31.8% demonstrates continued momentum. PEG of 0.95 suggests the stock is reasonably priced for its growth.
Bull Case : SCSC
The strongest argument for SCSC centers on Price/Book, Debt/Equity, PEG Ratio. Revenue growth of 17.3% demonstrates continued momentum. PEG of 0.79 suggests the stock is reasonably priced for its growth.
Bear Case : ARW
The primary concerns for ARW are Altman Z-Score, Profit Margin, Operating Margin. Thin 2.3% margins leave little buffer for downturns.
Bear Case : SCSC
The primary concerns for SCSC are Market Cap, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
ARW profiles as a hypergrowth stock while SCSC is a growth play — different risk/reward profiles.
SCSC carries more volatility with a beta of 1.24 — expect wider price swings.
ARW is growing revenue faster at 31.8% — sustainability is the question.
ARW generates stronger free cash flow (297M), providing more financial flexibility.
Bottom Line
ARW scores higher overall (75/100 vs 66/100) and 31.8% revenue growth. Both earn "Strong Buy" and "Strong 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.
Visit Website →ScanSource Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. The company is headquartered in Greenville, South Carolina.
Visit Website →Compare with Other ELECTRONICS & COMPUTER DISTRIBUTION Stocks
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