Arrow Electronics (NYSE:ARW – Get Free Report) and Advanced Energy Industries (NASDAQ:AEIS – Get Free Report) are both large-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Arrow Electronics and Advanced Energy Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arrow Electronics | 1 | 1 | 3 | 1 | 2.67 |
| Advanced Energy Industries | 0 | 2 | 11 | 1 | 2.93 |
Arrow Electronics currently has a consensus target price of $233.25, indicating a potential upside of 2.32%. Advanced Energy Industries has a consensus target price of $409.50, indicating a potential upside of 41.86%. Given Advanced Energy Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Advanced Energy Industries is more favorable than Arrow Electronics.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Arrow Electronics | 2.26% | 13.41% | 2.83% |
| Advanced Energy Industries | 10.77% | 20.75% | 10.39% |
Risk & Volatility
Arrow Electronics has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Advanced Energy Industries has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Insider and Institutional Ownership
99.3% of Arrow Electronics shares are held by institutional investors. Comparatively, 99.7% of Advanced Energy Industries shares are held by institutional investors. 0.8% of Arrow Electronics shares are held by insiders. Comparatively, 1.3% of Advanced Energy Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Arrow Electronics and Advanced Energy Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arrow Electronics | $30.85 billion | 0.38 | $571.27 million | $15.65 | 14.57 |
| Advanced Energy Industries | $1.80 billion | 6.43 | $148.40 million | $5.36 | 53.85 |
Arrow Electronics has higher revenue and earnings than Advanced Energy Industries. Arrow Electronics is trading at a lower price-to-earnings ratio than Advanced Energy Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Advanced Energy Industries beats Arrow Electronics on 11 of the 14 factors compared between the two stocks.
About Arrow Electronics
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 the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes electronic components comprising semiconductor products and related services; interconnect, passive, and electromechanical products, including capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions. This segment also provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.
About Advanced Energy Industries
Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.
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