Arrow Electronics (ARW) and Ituran (ITRN) Head to Head Analysis

Arrow Electronics (NYSE: ARW) and Ituran (NASDAQ:ITRN) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Institutional and Insider Ownership

93.8% of Arrow Electronics shares are owned by institutional investors. Comparatively, 54.7% of Ituran shares are owned by institutional investors. 1.3% of Arrow Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Arrow Electronics has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Ituran has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Arrow Electronics 1.50% 14.12% 4.59%
Ituran 18.36% 34.76% 21.36%

Earnings and Valuation

This table compares Arrow Electronics and Ituran’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 0.25 $401.96 million $7.56 9.96
Ituran $238.52 million 2.78 $43.79 million $2.09 15.12

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

Analyst Ratings

This is a breakdown of recent ratings for Arrow Electronics and Ituran, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arrow Electronics 0 1 2 1 3.00
Ituran 0 2 0 0 2.00

Arrow Electronics presently has a consensus price target of $89.50, suggesting a potential upside of 18.86%. Ituran has a consensus price target of $36.00, suggesting a potential upside of 13.92%. Given Arrow Electronics’ stronger consensus rating and higher possible upside, analysts clearly believe Arrow Electronics is more favorable than Ituran.

Dividends

Ituran pays an annual dividend of $0.96 per share and has a dividend yield of 3.0%. Arrow Electronics does not pay a dividend. Ituran pays out 45.9% of its earnings in the form of a dividend.

Summary

Arrow Electronics beats Ituran on 11 of the 17 factors compared between the two stocks.

About Arrow Electronics

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions worldwide. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products consisting primarily of capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, including data-center, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.

About Ituran

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based services and wireless communications products in Israel, Brazil, Argentina, and the United States. The company's Location-Based Services segment provides stolen vehicle recovery and tracking services, which enable to locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and personal locator services that allow customers to protect valuable merchandise and equipment. This segment also offers on-demand navigation guidance, information, and assistance to its customers, such as the provision of traffic reports, help with directions, and information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities, as well as Connect, a car service based on the Android platform, which provides access to Android market applications and to various services from car systems and remote communications. This segment provides its services to insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The company's Wireless Communications Products segment provides Base Site, a radio receiver, which includes a processor and a data computation unit to collect and send data to and from transponders, and send that data to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; GPS/GPRS-based products, such as navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. Ituran Location and Control Ltd. was founded in 1994 and is headquartered in Azor, Israel.

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