Arrow Electronics (NYSE: ARW) and EZchip Semiconductor (NASDAQ:EZCH) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Risk & Volatility
Arrow Electronics has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, EZchip Semiconductor has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.
Earnings & Valuation
This table compares Arrow Electronics and EZchip Semiconductor’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arrow Electronics||$26.81 billion||0.27||$401.96 million||$4.47||18.30|
Arrow Electronics has higher revenue and earnings than EZchip Semiconductor. EZchip Semiconductor is trading at a lower price-to-earnings ratio than Arrow Electronics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
93.0% of Arrow Electronics shares are owned by institutional investors. 1.2% of Arrow Electronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Arrow Electronics and EZchip Semiconductor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Arrow Electronics and EZchip Semiconductor, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arrow Electronics currently has a consensus price target of $89.50, indicating a potential upside of 9.40%. Given Arrow Electronics’ higher probable upside, equities analysts clearly believe Arrow Electronics is more favorable than EZchip Semiconductor.
Arrow Electronics beats EZchip Semiconductor on 10 of the 12 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 EZchip Semiconductor
EZchip Semiconductor Ltd.is a fabless semiconductor company that provides data-path processing solutions for a range of applications for carrier, cloud and data center networks. The Company’s portfolio of solutions includes network processors, multi-core processors, network adapters and appliances with a software ecosystem. It designs and sells network processors for networking equipment, integrating several key functions into a single chip. Networking equipment vendors use the Company’s network processors to form the silicon core of networking equipment, such as switches and routers, for voice, video and data integration in a variety of applications. The Company’s network processors are single-chip solutions that enable its customers to design multi-port line cards. Its multi-core processors allow customers to design systems that are high performance, as well as power efficient. The Company’s subsidiaries include EZchip Technologies Ltd., EZchip Inc. and EZchip Semiconductor Inc.
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