PLUS vs ARW

For growth investors, Arrow Electronics, Inc.

(ARW) is the stronger pick with 10. 5% revenue growth year-over-year, versus -7. 0% for ePlus inc. (PLUS). Arrow Electronics, Inc. (ARW) offers the better valuation at 17. 4x trailing P/E (13. 4x forward), making it the more compelling value choice. Analysts rate ePlus inc. (PLUS) a "Buy" — based on 5 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. 4x versus ePlus inc. at 21. 4x. On forward P/E, Arrow Electronics, Inc. is actually cheaper at 13. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Arrow Electronics, Inc. wins at 1. 67x versus ePlus inc. 's 1. 74x — a reasonable growth-adjusted valuation.

Over the past 5 years, ePlus inc.

(PLUS) delivered a total return of +71. 1%, compared to +61. 6% for Arrow Electronics, Inc. (ARW). Over 10 years, the gap is even starker: PLUS returned +330. 0% versus ARW's +218. 0%. 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), ePlus inc.

(PLUS) is the lower-risk stock at 1. 21β versus Arrow Electronics, Inc. 's 1. 32β — meaning ARW is approximately 9% more volatile than PLUS relative to the S&P 500. On balance sheet safety, ePlus inc. (PLUS) carries a lower debt/equity ratio of 13% versus 46% for Arrow Electronics, 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. 0% for ePlus inc. (PLUS). On earnings-per-share growth, the picture is similar: Arrow Electronics, Inc. grew EPS 49. 9% year-over-year, compared to -6. 2% for ePlus inc.. Over a 3-year CAGR, PLUS leads at 4. 3% 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.

ePlus inc.

(PLUS) is the more profitable company, earning 5. 2% net margin versus 1. 9% for Arrow Electronics, Inc. — meaning it keeps 5. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PLUS leads at 6. 8% versus 3. 0% for ARW. At the gross margin level — before operating expenses — PLUS leads at 26. 6%, 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, Arrow Electronics, Inc. (ARW) is the more undervalued stock at a PEG of 1. 67x versus ePlus inc. 's 1. 74x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Arrow Electronics, Inc. (ARW) trades at 13. 4x forward P/E versus 16. 6x for ePlus inc. — 3. 2x cheaper on a one-year earnings basis.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, ePlus inc.

(PLUS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 21), +330. 0% 10Y return). Both have compounded well over 10 years (PLUS: +330. 0%, ARW: +218. 0%), 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: PLUS is a small-cap quality compounder stock; ARW is a small-cap deep-value 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.