ARROW ELECTRONICS, INC. vs TE CONNECTIVITY PLC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Arrow distributes electronic components at a 2.17% net margin; TE Connectivity makes them at 15.54%, the difference between moving product and owning it. TE earns more than double Arrow's return on equity, 21.96% against 10.66%, on seven times the margin, and trades richer, 20.2 times earnings against 15.4, though it converts far more free cash, 5.81% against 2.73%. Arrow is the cheaper, thinner-margin middleman near book value; TE the higher-quality manufacturer. The pair shows the two ends of the electronics supply chain: TE captures the margin of designing and making connectors and sensors, Arrow earns a distributor's sliver reselling them, and TE's superior economics justify its premium many times over.
Comparison updated 2026-07-11.
| Metric | ARW | TEL |
|---|---|---|
| Price | $215.03 | $198.01 |
| Market cap | $11.1B | $58.4B |
| Sector | Distribution | Distribution |
| Stage | Growth | Growth |
| Implied growth (priced in) | +4.8% | +18.7% |
| P/E | 15.4 | 20.2 |
| P/B | 1.63 | 4.41 |
| P/S | 0.33 | 3.12 |
| EV/EBITDA | 11.4 | 15.2 |
| Revenue growth | +20.5% | +16.7% |
| Gross margin | 11.5% | 36.8% |
| Operating margin | 3.8% | 20.1% |
| Net margin | 2.2% | 15.5% |
| Return on equity | 10.7% | 22.0% |
| Return on assets | 2.0% | 11.3% |
| Return on invested capital | 8.5% | 17.7% |
| FCF yield | 2.7% | 5.8% |
| Dividend yield | — | 1.4% |
| Debt / equity | 0.36 | 0.43 |
| Current ratio | 1.24 | 1.89 |
| Altman Z (solvency) | 7.44 | 4.64 |
| Piotroski F (quality) | 6 / 9 | 6 / 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.