PC Connection (CNXN) & EMC (EMC) Financial Comparison
PC Connection (NASDAQ: CNXN) and EMC (NYSE:EMC) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.
This is a summary of recent ratings and target prices for PC Connection and EMC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PC Connection currently has a consensus target price of $33.00, suggesting a potential upside of 29.82%. Given PC Connection’s stronger consensus rating and higher possible upside, analysts plainly believe PC Connection is more favorable than EMC.
Volatility & Risk
PC Connection has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, EMC has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
Earnings and Valuation
This table compares PC Connection and EMC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PC Connection||$2.86 billion||0.24||$90.07 million||$1.79||14.20|
PC Connection has higher revenue and earnings than EMC. PC Connection is trading at a lower price-to-earnings ratio than EMC, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
41.4% of PC Connection shares are owned by institutional investors. Comparatively, 79.9% of EMC shares are owned by institutional investors. 57.3% of PC Connection shares are owned by insiders. Comparatively, 0.4% of EMC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. PC Connection does not pay a dividend. EMC pays out 43.0% of its earnings in the form of a dividend. PC Connection has raised its dividend for 3 consecutive years.
This table compares PC Connection and EMC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PC Connection beats EMC on 11 of the 14 factors compared between the two stocks.
About PC Connection
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.
EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.
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