ARW vs WCC

For growth investors, Arrow Electronics, Inc.

(ARW) is the stronger pick with 10. 5% revenue growth year-over-year, versus 7. 8% for WESCO International, Inc. (WCC). Arrow Electronics, Inc. (ARW) offers the better valuation at 17. 6x trailing P/E (13. 6x forward), making it the more compelling value choice. Analysts rate WESCO International, Inc. (WCC) a "Buy" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Arrow Electronics, Inc.

(ARW) is the cheapest at 17. 6x versus WESCO International, Inc. at 27. 8x. On forward P/E, Arrow Electronics, Inc. is actually cheaper at 13. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: WESCO International, Inc. wins at 0. 43x versus Arrow Electronics, Inc. 's 1. 69x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, WESCO International, Inc.

(WCC) delivered a total return of +257. 8%, compared to +67. 8% for Arrow Electronics, Inc. (ARW). Over 10 years, the gap is even starker: WCC returned +539. 8% versus ARW's +222. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Arrow Electronics, Inc.

(ARW) is the lower-risk stock at 1. 32β versus WESCO International, Inc. 's 1. 83β — meaning WCC is approximately 38% more volatile than ARW relative to the S&P 500. On balance sheet safety, Arrow Electronics, Inc. (ARW) carries a lower debt/equity ratio of 46% versus 149% for WESCO International, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Arrow Electronics, Inc.

(ARW) is pulling ahead at 10. 5% versus 7. 8% for WESCO International, Inc. (WCC). On earnings-per-share growth, the picture is similar: Arrow Electronics, Inc. grew EPS 49. 9% year-over-year, compared to 0. 0% for WESCO International, Inc.. Over a 3-year CAGR, WCC leads at 3. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

WESCO International, Inc.

(WCC) is the more profitable company, earning 2. 7% net margin versus 1. 9% for Arrow Electronics, Inc. — meaning it keeps 2. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WCC leads at 5. 2% versus 3. 0% for ARW. At the gross margin level — before operating expenses — WCC leads at 20. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, WESCO International, Inc. (WCC) is the more undervalued stock at a PEG of 0. 43x versus Arrow Electronics, Inc. 's 1. 69x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Arrow Electronics, Inc. (ARW) trades at 13. 6x forward P/E versus 23. 2x for WESCO International, Inc. — 9. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WCC: -0. 8% to $360. 14.

In this comparison, WCC (0.

5% yield) pays a dividend. ARW does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Arrow Electronics, Inc.

(ARW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+222. 3% 10Y return). WESCO International, Inc. (WCC) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ARW: +222. 3%, WCC: +539. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (ARW (Technology) and WCC (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: ARW is a small-cap deep-value stock; WCC is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.