WESCO International (WCC) vs. Its Competitors Financial Analysis

WESCO International (NYSE:WCCGet Free Report) is one of 158 public companies in the “Trading Companies & Distributors” industry, but how does it compare to its competitors? We will compare WESCO International to related companies based on the strength of its risk, profitability, dividends, valuation, earnings, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for WESCO International and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WESCO International 0 0 8 1 3.11
WESCO International Competitors 1411 4859 6648 217 2.43

WESCO International presently has a consensus price target of $374.29, suggesting a potential upside of 8.51%. As a group, “Trading Companies & Distributors” companies have a potential upside of 7.66%. Given WESCO International’s stronger consensus rating and higher probable upside, research analysts clearly believe WESCO International is more favorable than its competitors.

Institutional and Insider Ownership

93.8% of WESCO International shares are held by institutional investors. Comparatively, 50.9% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 2.6% of WESCO International shares are held by company insiders. Comparatively, 17.1% of shares of all “Trading Companies & Distributors” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares WESCO International and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WESCO International 2.84% 14.95% 4.45%
WESCO International Competitors 0.68% -34.57% 3.12%

Valuation and Earnings

This table compares WESCO International and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WESCO International $23.51 billion $640.20 million 23.84
WESCO International Competitors $6.48 billion $363.90 million 24.12

WESCO International has higher revenue and earnings than its competitors. WESCO International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

WESCO International pays an annual dividend of $2.00 per share and has a dividend yield of 0.6%. WESCO International pays out 13.8% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.6% of their earnings in the form of a dividend. WESCO International has raised its dividend for 2 consecutive years.

Risk & Volatility

WESCO International has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, WESCO International’s competitors have a beta of 1.28, indicating that their average share price is 28% more volatile than the S&P 500.

Summary

WESCO International beats its competitors on 12 of the 15 factors compared.

WESCO International Company Profile

(Get Free Report)

WESCO International, Inc. provides business-to-business distribution, logistics services, and supply chain solutions in the United States, Canada, and internationally. It operates through three segments: Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS), and Utility and Broadband Solutions (UBS). The EES segment supplies products and supply chain solutions, including electrical equipment and supplies, automation and connected devices, security, lighting, wire and cable, and safety, as well as maintenance, repair, and operating (MRO) products. This segment also offers contractor solutions, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions. The CSS segment operates in the network infrastructure and security markets. This segment sells products directly to end-users or through various channels, including data communications contractors, security, network, professional audio/visual, and systems integrators. It also provides safety and energy management solutions. The UBS segment offers products and services to investor-owned utilities; public power companies; and service and wireless providers, broadband operators, and contractors. This segment's products include wire and cables, transformers, transmission and distribution hardware, switches, protective devices, connectors, conduits, pole line hardware, racks, cabinets, safety and MRO products, and point-to-point wireless devices. This segment also offers various service solutions, including fiber project management, high and medium voltage project design and support, pre-wired meters and capacitor banks, meter testing and metering infrastructure installation, personal protective equipment dielectric testing, and tool repair, as well as emergency response, storage yard, materials, and logistics management. The company was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.

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