PC Connection (NASDAQ: CNXN) and Electronics for Imaging (NASDAQ:EFII) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares PC Connection and Electronics for Imaging’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PC Connection $2.86 billion 0.27 $90.07 million $1.79 15.88
Electronics for Imaging $988.02 million 2.02 $130.87 million $0.98 43.87

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

Insider & Institutional Ownership

41.4% of PC Connection shares are held by institutional investors. 57.3% of PC Connection shares are held by company insiders. Comparatively, 1.9% of Electronics for Imaging shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for PC Connection and Electronics for Imaging, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PC Connection 0 0 1 0 3.00
Electronics for Imaging 1 2 10 0 2.69

PC Connection presently has a consensus target price of $33.00, suggesting a potential upside of 16.12%. Electronics for Imaging has a consensus target price of $51.44, suggesting a potential upside of 19.67%. Given Electronics for Imaging’s higher possible upside, analysts clearly believe Electronics for Imaging is more favorable than PC Connection.

Risk and Volatility

PC Connection has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Electronics for Imaging has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares PC Connection and Electronics for Imaging’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PC Connection 1.66% 11.39% 7.37%
Electronics for Imaging 4.70% 5.58% 3.07%

Summary

PC Connection beats Electronics for Imaging on 8 of the 14 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.

Electronics for Imaging Company Profile

Electronics For Imaging, Inc. is engaged in digital printing, focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog-based printing to digital on-demand printing. It operates through three segments. The Industrial Inkjet segment consists of its VUTEk and Matan super-wide and wide format display graphics, Reggiani textile, Jetrion label and packaging and Cretaprint ceramic tile decoration and construction material industrial digital inkjet printers; ceramic, water-based, and thermoforming ink, and digital inkjet printer parts, and professional services. The Productivity Software segment consists of a software suite that enables automated end-to-end business and production workflows for the print and packaging industry. The Fiery segment consists of digital front ends that transform digital copiers and printers into networked printing devices for the office, industrial and commercial printing markets.

Receive News & Ratings for PC Connection Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PC Connection Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.