Analyzing Taitron Components (TAIT) and Arrow Electronics (ARW)

Taitron Components (NASDAQ:TAIT) and Arrow Electronics (NYSE:ARW) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

Taitron Components pays an annual dividend of $0.12 per share and has a dividend yield of 6.6%. Arrow Electronics does not pay a dividend.

Institutional and Insider Ownership

10.5% of Taitron Components shares are owned by institutional investors. Comparatively, 93.2% of Arrow Electronics shares are owned by institutional investors. 60.0% of Taitron Components shares are owned by company insiders. Comparatively, 1.3% of Arrow Electronics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Taitron Components and Arrow Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taitron Components 10.38% 6.54% 5.90%
Arrow Electronics 1.84% 15.12% 4.70%

Risk & Volatility

Taitron Components has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Arrow Electronics has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Taitron Components and Arrow Electronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taitron Components 0 0 0 0 N/A
Arrow Electronics 0 2 3 1 2.83

Arrow Electronics has a consensus price target of $86.00, indicating a potential upside of 17.01%. Given Arrow Electronics’ higher possible upside, analysts clearly believe Arrow Electronics is more favorable than Taitron Components.

Valuation & Earnings

This table compares Taitron Components and Arrow Electronics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Taitron Components $7.62 million 1.34 $700,000.00 N/A N/A
Arrow Electronics $26.81 billion 0.24 $401.96 million $7.56 9.72

Arrow Electronics has higher revenue and earnings than Taitron Components.

Summary

Arrow Electronics beats Taitron Components on 8 of the 14 factors compared between the two stocks.

Taitron Components Company Profile

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, passive components, transistors, and diodes. The company also provides value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM services for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Mexico, Taiwan, and internationally. The company has strategic alliances with Teamforce Co. Ltd.; Grand Shine Management Limited; and Zowie Technology Corporation. Taitron Components Incorporated was founded in 1989 and is headquartered in Valencia, California.

Arrow Electronics Company Profile

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. It has a strategic alliance with AECOM. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.

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