PC Connection (NASDAQ:CNXN) and IEH (OTCMKTS:IEHC) Head to Head Comparison

IEH (OTCMKTS:IEHC) and PC Connection (NASDAQ:CNXN) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IEH	$29.42 million	2.51	-$1.30 million	($0.01)	-2,977.00
PC Connection	$2.87 billion	0.83	$83.72 million	$3.78	25.03

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

Institutional and Insider Ownership

42.8% of PC Connection shares are held by institutional investors. 28.1% of IEH shares are held by company insiders. Comparatively, 56.6% of PC Connection shares are held 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IEH	0	1	0	0	2.00
PC Connection	0	1	1	0	2.50

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IEH	0.04%	0.06%	0.05%
PC Connection	3.21%	10.90%	7.29%

Volatility and Risk

IEH has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500. Comparatively, PC Connection has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Summary

PC Connection beats IEH on 12 of the 13 factors compared between the two stocks.

About IEH

IEH Corporation designs, develops, manufactures, and sells printed circuit board connectors and custom interconnects for high performance applications in the United States and internationally. The company's products are used as basic components of larger assemblies of finished goods. It markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to defense, aerospace, medical, industrial, test equipment, space, and commercial electronic markets. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1941 and is based in Brooklyn, New York.

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.