Anixter (AXE) & WESCO International (WCC) Critical Comparison

Anixter (NYSE: AXE) and WESCO International (NYSE:WCC) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Earnings and Valuation

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This table compares Anixter and WESCO International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anixter $7.93 billion 0.33 $109.00 million $5.16 15.16
WESCO International $7.68 billion 0.39 $163.46 million $3.93 16.21

WESCO International has lower revenue, but higher earnings than Anixter. Anixter is trading at a lower price-to-earnings ratio than WESCO International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.6% of Anixter shares are held by institutional investors. 14.7% of Anixter shares are held by company insiders. Comparatively, 1.9% of WESCO International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Anixter and WESCO International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anixter 1.38% 12.39% 4.18%
WESCO International 2.13% 9.06% 4.07%

Risk and Volatility

Anixter has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500. Comparatively, WESCO International has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Anixter and WESCO International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anixter 0 2 1 0 2.33
WESCO International 0 5 5 0 2.50

Anixter presently has a consensus target price of $88.00, indicating a potential upside of 12.53%. WESCO International has a consensus target price of $68.70, indicating a potential upside of 7.85%. Given Anixter’s higher probable upside, research analysts plainly believe Anixter is more favorable than WESCO International.

Summary

Anixter beats WESCO International on 8 of the 14 factors compared between the two stocks.

About Anixter

Anixter International Inc., through its subsidiary, Anixter Inc., distributes enterprise cabling and security solutions, electrical and electronic wire and cable products, and utility power solutions. Its Network & Security Solutions segment offers copper and fiber optic cable and connectivity, access control, video surveillance, intrusion and fire/life safety, cabinet, power, cable management, wireless, professional audio/video, voice and networking switche, and other ancillary products for technology, finance, telecommunications service provider, transportation, education, government, healthcare, and retail industries. The company's Electrical & Electronic Solutions segment provides electrical and electronic wires and cables, shipboard cables, support and supply products, low-voltage and instrumentation cables, industrial communication and control products, security cables, connectors, industrial Ethernet switches, and voice and data cables to the commercial and industrial, and original equipment manufacturer markets. Its Utility Power Solutions segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies, and smart-grid products, as well as arranges materials management and procurement outsourcing for the power generation and electricity distribution industries. The company serves contractors, installers, system integrators, value-added resellers, architects, engineers, and wholesale distributors in the manufacturing, resource extraction, Internet service provider, and utility industries, as well as defense customers. It distributes its products primarily in North America, Europe, the Middle East, Africa, the Asia Pacific, and Central and Latin America. The company was formerly known as Itel Corporation. Anixter International Inc. was founded in 1957 and is headquartered in Glenview, Illinois.

About WESCO International

WESCO International, Inc. distributes electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturers products and construction materials in North America and internationally. The company sells general supplies, such as wiring devices, fuses, terminals, connectors, boxes, enclosures, fittings, lugs, terminations, wraps, splicing and marking equipment, tools and testers, safety, personal protection, sealants, cutting tools, adhesives, consumables, fasteners, janitorial, and other MRO supplies. It also distributes wires, cables, raceways, and metallic and non-metallic conduits; and communications and security products, including structured cabling systems, broadband products, low voltage specialty systems, specialty wire and cable products, equipment racks and cabinets, access controls, alarms, cameras, and paging and voice solutions. In addition, the company sells electrical distribution and controls comprising circuit breakers, transformers, switchboards, panel boards, metering products, and busway products; lamps, fixtures, ballasts, and lighting control products; and motor control devices, drives, relays, timers, pushbuttons, operator interfaces, switches, sensors, interconnects, and surge and power protection products. Further, it provides supply chain management and logistics services; and value-added services in the areas of construction, e-commerce, energy and sustainability, engineering, production support, safety and security, supply chain optimization, training, and working capital. The company serves industrial firms, electrical and data communications contractors, utilities, commercial organizations, institutions, and governmental entities. WESCO International, Inc. was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.

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