WallStSmart

Arrow Electronics Inc (ARW)vsScanSource Inc (SCSC)

VS

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 Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 4.5Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 1.94

SCSC

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 5.0Value: 7.3Quality: 6.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARWSignificantly Overvalued (-74.1%)

Margin of Safety

-74.1%

Fair Value

$90.63

Current Price

$219.10

$128.47 premium

UndervaluedFair: $90.63Overvalued
SCSCUndervalued (+8.4%)

Margin of Safety

+8.4%

Fair Value

$37.84

Current Price

$57.75

$19.91 discount

UndervaluedFair: $37.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARW5 strengths · Avg: 8.4/10
Revenue GrowthGrowth
31.8%10/10

Revenue surging 31.8% year-over-year

PEG RatioValuation
0.958/10

Growing faster than its price suggests

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
46.5%8/10

Earnings expanding 46.5% YoY

SCSC6 strengths · Avg: 8.5/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.798/10

Growing faster than its price suggests

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
17.3%8/10

17.3% revenue growth

EPS GrowthGrowth
41.3%8/10

Earnings expanding 41.3% YoY

Areas to Watch

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

Grey zone — moderate risk

Profit MarginProfitability
2.3%3/10

2.3% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SCSC4 concerns · Avg: 2.8/10
Market CapQuality
$1.15B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Free Cash FlowQuality
$-4.79M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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.

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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.

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