Reviewing Arrow Electronics (ARW) and Fairchild Semiconductor Intl (FCS)

Arrow Electronics (NYSE: ARW) and Fairchild Semiconductor Intl (NASDAQ:FCS) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Arrow Electronics and Fairchild Semiconductor Intl’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arrow Electronics 2.01% 13.52% 4.49%
Fairchild Semiconductor Intl 1.97% 2.46% 1.77%

Volatility & Risk

Arrow Electronics has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Fairchild Semiconductor Intl has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500.

Institutional & Insider Ownership

93.2% of Arrow Electronics shares are owned by institutional investors. Comparatively, 89.7% of Fairchild Semiconductor Intl shares are owned by institutional investors. 1.2% of Arrow Electronics shares are owned by insiders. Comparatively, 0.7% of Fairchild Semiconductor Intl shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Arrow Electronics and Fairchild Semiconductor Intl, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arrow Electronics 0 2 2 0 2.50
Fairchild Semiconductor Intl 0 0 0 0 N/A

Arrow Electronics currently has a consensus price target of $77.75, suggesting a potential downside of 5.87%. Given Arrow Electronics’ higher probable upside, analysts plainly believe Arrow Electronics is more favorable than Fairchild Semiconductor Intl.

Earnings & Valuation

This table compares Arrow Electronics and Fairchild Semiconductor Intl’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Arrow Electronics $24.60 billion 0.30 $1.09 billion $5.46 15.13
Fairchild Semiconductor Intl N/A N/A N/A $0.06 331.06

Arrow Electronics has higher revenue and earnings than Fairchild Semiconductor Intl. Arrow Electronics is trading at a lower price-to-earnings ratio than Fairchild Semiconductor Intl, indicating that it is currently the more affordable of the two stocks.

Summary

Arrow Electronics beats Fairchild Semiconductor Intl on 9 of the 10 factors compared between the two stocks.

About Arrow Electronics

Arrow Electronics, Inc. is a provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The Company has a portfolio of product offerings available from various electronic components and enterprise computing solutions suppliers. The Company’s segments include the global components business; the global enterprise computing solutions (ECS) business, and corporate business segment. It distributes electronic components to original equipment manufacturers and contract manufacturers through its global components business segment. Through global ECS business segment, it provides enterprise computing solutions to value-added resellers. The Global components segment markets and distributes electronic components and provides a range of value-added capabilities. Global ECS’ portfolio of computing solutions includes datacenter, cloud, security, and analytics solutions.

About Fairchild Semiconductor Intl

Fairchild Semiconductor International, Inc. is focused on developing, manufacturing and selling power management solutions. The Company is engaged in power analog and discrete design, as well as packaging. It also makes non-power semiconductor and micro-electro-mechanical systems (MEMS)-based solutions. The Company’s products are used in various end market applications, including industrial, home appliance, automotive, mobile, server and cloud computing, lighting and consumer electronics. It develops a range of power and signal path products for industrial, appliance, cloud computing and automotive applications. The Company’s segments include Switching Power Solutions segment (SPS), the Analog Power and Signal Solutions segment (APSS), and Standard Products Group (SPG). It also invests in wafer fabrication and packaging technology to support the development of these products. The Company also has an eight-inch wafer fabrication site in Bucheon, Korea.

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