PC Connection (NASDAQ: CNXN) and Quantum (NYSE:QTM) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Institutional and Insider Ownership
40.3% of PC Connection shares are held by institutional investors. Comparatively, 66.2% of Quantum shares are held by institutional investors. 57.3% of PC Connection shares are held by insiders. Comparatively, 8.6% of Quantum shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares PC Connection and Quantum’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PC Connection||$2.91 billion||0.24||$54.86 million||$2.05||12.94|
|Quantum||$505.35 million||0.28||$3.64 million||($0.24)||-17.21|
PC Connection has higher revenue and earnings than Quantum. Quantum is trading at a lower price-to-earnings ratio than PC Connection, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
PC Connection has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Quantum has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500.
This is a breakdown of recent ratings for PC Connection and Quantum, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PC Connection presently has a consensus target price of $33.00, indicating a potential upside of 24.43%. Quantum has a consensus target price of $10.00, indicating a potential upside of 142.13%. Given Quantum’s higher possible upside, analysts plainly believe Quantum is more favorable than PC Connection.
This table compares PC Connection and Quantum’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PC Connection beats Quantum on 8 of the 12 factors compared between the two stocks.
PC Connection Company Profile
PC Connection, Inc. is a provider of a range of information technology (IT) solutions. The Company conducts its business operations through three business segments: small- to medium-sized businesses (SMB), Large Account and Public Sector. The Company enables customers to design, enable, manage and service their IT environments. The Company’s IT products include computer systems, software and peripheral equipment, networking communications, and other products and accessories that the Company purchases from manufacturers, distributors and other suppliers. The Company also offers services involving design, configuration and implementation of IT solutions. The Company markets its products and services through its Websites, including www.connection.com, www.connection.com/enterprise, www.connection.com/publicsector, and www.macconnection.com. It uses a combination of outbound telemarketing, including some on-site sales solicitation by business development managers.
Quantum Company Profile
Quantum Corporation focuses on scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing and preserving digital assets over the entire data lifecycle. The Company’s end-to-end tiered storage solutions enable users to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. It works with a network of distributors, value-added resellers (VARs), direct marketing resellers (DMRs), original equipment manufacturers (OEMs) and other suppliers to meet customers’ evolving needs. Its scale-out storage portfolio includes StorNext software, appliances and full systems called StorNext Pro Solutions, as well as Xcellis workflow storage, QXS disk storage, Lattus extended online storage and Q-Cloud Archive and Vault services. Its StorNext offerings enable customers to manage large unstructured data sets in an information workflow.
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