ARROW ELECTRONICS, INC. vs QXO, Inc., two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Arrow Electronics distributes components at a razor 2.17% net margin but stays reliably profitable, a 10.66% return on equity; QXO is a building-products rollup still in the red at a negative 5.07% return as it acquires scale. Arrow trades at 15.4 times earnings and 1.63 times book, a cheap established distributor; QXO at no clean multiple and 1.30 times book, priced on its buildout. Both carry moderate debt near 0.3 turns. The pair contrasts a low-margin veteran with an unprofitable newcomer: Arrow already runs the thin, cyclical economics of electronics distribution and trades cheaply for them, QXO is spending to build a distribution platform and has no earnings to show yet, one a value stock, the other a venture.
Comparison updated 2026-07-11.
| Metric | ARW | QXO |
|---|---|---|
| Price | $215.03 | $17.80 |
| Market cap | $11.1B | $13.3B |
| Sector | Distribution | Distribution |
| Stage | Growth | Growth |
| Implied growth (priced in) | +4.8% | — |
| P/E | 15.4 | — |
| P/B | 1.63 | 1.30 |
| P/S | 0.33 | 1.55 |
| EV/EBITDA | 11.4 | — |
| Revenue growth | +20.5% | +200.0% |
| Gross margin | 11.5% | 23.7% |
| Operating margin | 3.8% | -14.6% |
| Net margin | 2.2% | -6.0% |
| Return on equity | 10.7% | -5.1% |
| Return on assets | 2.0% | -3.1% |
| Return on invested capital | 8.5% | -2.7% |
| FCF yield | 2.7% | 1.5% |
| Debt / equity | 0.36 | 0.30 |
| Current ratio | 1.24 | 3.33 |
| Altman Z (solvency) | 7.44 | 1.96 |
| Piotroski F (quality) | 6 / 9 | 3 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.