CNXN vs ARW vs CDW vs AVT

For growth investors, Arrow Electronics, Inc.

(ARW) is the stronger pick with 10. 5% revenue growth year-over-year, versus -6. 6% for Avnet, Inc. (AVT). CDW Corporation (CDW) offers the better valuation at 13. 0x trailing P/E (9. 9x forward), making it the more compelling value choice. Analysts rate PC Connection, Inc. (CNXN) a "Buy" — based on 1 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, CDW Corporation (CDW) is the cheapest at 13.

0x versus Avnet, Inc. at 29. 9x. On forward P/E, CDW Corporation is actually cheaper at 9. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: CDW Corporation wins at 1. 21x versus PC Connection, Inc. 's 1. 88x — a reasonable growth-adjusted valuation.

Over the past 5 years, Avnet, Inc.

(AVT) delivered a total return of +99. 6%, compared to -32. 2% for CDW Corporation (CDW). Over 10 years, the gap is even starker: ARW returned +226. 6% versus AVT's +135. 6%. 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), PC Connection, Inc.

(CNXN) is the lower-risk stock at 0. 81β versus Arrow Electronics, Inc. 's 1. 34β — meaning ARW is approximately 66% more volatile than CNXN relative to the S&P 500. On balance sheet safety, PC Connection, Inc. (CNXN) carries a lower debt/equity ratio of 0% versus 2% for CDW Corporation — 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 -6. 6% for Avnet, Inc. (AVT). On earnings-per-share growth, the picture is similar: Arrow Electronics, Inc. grew EPS 49. 9% year-over-year, compared to -49. 4% for Avnet, Inc.. Over a 3-year CAGR, CDW leads at -1. 9% 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.

CDW Corporation (CDW) is the more profitable company, earning 4.

8% net margin versus 1. 1% for Avnet, Inc. — meaning it keeps 4. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CDW leads at 7. 4% versus 2. 8% for AVT. At the gross margin level — before operating expenses — CDW leads at 21. 7%, 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, CDW Corporation (CDW) is the more undervalued stock at a PEG of 1. 21x versus PC Connection, Inc. 's 1. 88x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, CDW Corporation (CDW) trades at 9. 9x forward P/E versus 17. 0x for PC Connection, Inc. — 7. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CDW: 41. 4% to $148. 20.

In this comparison, CDW (2.

4% yield), AVT (1. 6% yield), CNXN (0. 9% yield) pay a dividend. ARW does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, PC Connection, Inc.

(CNXN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 81), 0. 9% yield, +204. 6% 10Y return). Both have compounded well over 10 years (CNXN: +204. 6%, ARW: +226. 6%), 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.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: CNXN is a small-cap quality compounder stock; ARW is a small-cap deep-value stock; CDW is a mid-cap deep-value stock; AVT is a small-cap quality compounder stock. CNXN, CDW, AVT pay a dividend while ARW does not, making them suitable for different income and tax situations. 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.