PC Connection (NASDAQ:CNXN) vs. Alps Electric (OTCMKTS:APELY) Head-To-Head Comparison

Alps Electric (OTCMKTS:APELY) and PC Connection (NASDAQ:CNXN) are both mid-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Institutional and Insider Ownership

0.1% of Alps Electric shares are owned by institutional investors. Comparatively, 42.8% of PC Connection shares are owned by institutional investors. 10.4% of Alps Electric shares are owned by company insiders. Comparatively, 56.6% of PC Connection shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Alps Electric and PC Connection”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alps Electric	$6.77 billion	0.37	$177.41 million	$1.09	22.00
PC Connection	$2.87 billion	0.70	$83.72 million	$4.05	19.67

Alps Electric has higher revenue and earnings than PC Connection. PC Connection is trading at a lower price-to-earnings ratio than Alps Electric, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Alps Electric and PC Connection’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alps Electric	1.59%	5.46%	3.10%
PC Connection	3.25%	11.38%	7.49%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Alps Electric and PC Connection, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alps Electric	0	0	0	1	4.00
PC Connection	0	0	1	1	3.50

Volatility & Risk

Alps Electric has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, PC Connection has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Dividends

Alps Electric pays an annual dividend of $0.47 per share and has a dividend yield of 2.0%. PC Connection pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Alps Electric pays out 43.1% of its earnings in the form of a dividend. PC Connection pays out 19.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PC Connection has increased its dividend for 2 consecutive years.

Summary

PC Connection beats Alps Electric on 12 of the 16 factors compared between the two stocks.

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

About PC Connection

PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company also provides services comprising design, configuration, and implementation of IT solutions. In addition, publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. The company markets its products and services through its Websites, such as connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) comprising small office/home offices customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.