Arrow Electronics Inc (ARW)vsScanSource Inc (SCSC)
ARW
Arrow Electronics Inc
$146.13
+1.31%
TECHNOLOGY · Cap: $7.43B
SCSC
ScanSource Inc
$36.76
+0.19%
TECHNOLOGY · Cap: $789.05M
Smart Verdict
WallStSmart Research — data-driven comparison
Arrow Electronics Inc generates 920% more annual revenue ($30.85B vs $3.02B). SCSC leads profitability with a 2.4% profit margin vs 1.8%. SCSC appears more attractively valued with a PEG of 0.52. ARW earns a higher WallStSmart Score of 69/100 (B-).
ARW
Strong Buy69
out of 100
Grade: B-
SCSC
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.2%
Fair Value
$511.52
Current Price
$146.13
$365.39 discount
Margin of Safety
+41.1%
Fair Value
$58.84
Current Price
$36.76
$22.08 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 100.5% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Revenue surging 20.1% year-over-year
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
Grey zone — moderate risk
1.8% margin — thin
Operating margin of 3.7%
Weak financial health signals
2.5% revenue growth
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 2.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARW
The strongest argument for ARW centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 20.1% 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 P/E Ratio, Price/Book, Altman Z-Score. PEG of 0.52 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 1.8% margins leave little buffer for downturns.
Bear Case : SCSC
The primary concerns for SCSC are Revenue Growth, Market Cap, Profit Margin. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
ARW profiles as a growth stock while SCSC is a value play — different risk/reward profiles.
SCSC carries more volatility with a beta of 1.28 — expect wider price swings.
ARW is growing revenue faster at 20.1% — sustainability is the question.
ARW generates stronger free cash flow (173M), providing more financial flexibility.
Bottom Line
ARW scores higher overall (69/100 vs 58/100) and 20.1% revenue growth. SCSC offers better value entry with a 41.1% 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.
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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