PC Connection (NASDAQ:CNXN – Get Free Report) and Interlink Electronics (NASDAQ:LINK – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
42.8% of PC Connection shares are held by institutional investors. 56.6% of PC Connection shares are held by company insiders. Comparatively, 77.5% of Interlink Electronics shares are held 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.
Profitability
This table compares PC Connection and Interlink Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PC Connection | 3.21% | 10.90% | 7.29% |
| Interlink Electronics | -8.95% | -12.38% | -9.81% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PC Connection | 0 | 1 | 1 | 0 | 2.50 |
| Interlink Electronics | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares PC Connection and Interlink Electronics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PC Connection | $2.87 billion | 0.81 | $83.72 million | $3.78 | 24.44 |
| Interlink Electronics | $11.89 million | 7.88 | -$1.62 million | ($0.07) | -85.00 |
PC Connection has higher revenue and earnings than Interlink Electronics. Interlink Electronics is trading at a lower price-to-earnings ratio than PC Connection, indicating that it is currently the more affordable of the two stocks.
Summary
PC Connection beats Interlink Electronics on 10 of the 12 factors compared between the two stocks.
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.
About Interlink Electronics
Interlink Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells force-sensing technologies that incorporate proprietary materials technology, firmware, and software into sensor-based products and custom sensor system solutions in the United States, Asia, the Middle East, Europe, and internationally. The company's products include sensor components, subassemblies, modules, and products that support cursor control and novel three-dimensional user inputs. It also provides simple force and piezo sensors to multi-finger capable rugged trackpads; Force-Sensing Resistor sensors; force sensing linear potentiometers for menu navigation and control; and integrated mouse modules and pointing solutions to various electronic devices. In addition, the company offers human machine interface technology platforms for various applications, including vehicle entry, vehicle multi-media control interface, rugged touch controls, presence detection, collision detection, speed and torque controls, pressure mapping, biological monitoring, and others; and embedded firmware development and integration support services. It serves multi-national and start-up companies, technology design houses, original design manufacturers, original equipment manufacturers, and universities in various markets, such as consumer electronics, automotive, industrial, and medical through direct sales employees, as well as outside sales representatives and distributors. Interlink Electronics, Inc. was incorporated in 1985 and is headquartered in Irvine, California.
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