ARROW ELECTRONICS, INC. vs WESCO International, Inc., two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Arrow Electronics and WESCO are both broadline distributors running thin margins, Arrow at 2.17% net and WESCO at 2.79%, but WESCO earns the higher return on equity, 13.24% against 10.66%, partly by carrying far more debt, 1.13 turns against 0.36. Arrow is cheaper, 15.4 times earnings against WESCO's 24.7, and trades near book at 1.63 against 3.37. Arrow converts more free cash, 2.73% against 1.25%. The pair matches an electronics distributor with an electrical one, both low-margin volume businesses: Arrow the cheaper, less-levered name trading near its book value, WESCO the higher-return but heavily indebted operator the market prices at a richer multiple, and Arrow looks the safer value.
Comparison updated 2026-07-11.
| Metric | ARW | WCC |
|---|---|---|
| Price | $215.03 | $347.28 |
| Market cap | $11.1B | $17.2B |
| Sector | Distribution | Distribution |
| Stage | Growth | Mature |
| Implied growth (priced in) | +4.8% | +20.3% |
| P/E | 15.4 | 24.7 |
| P/B | 1.63 | 3.37 |
| P/S | 0.33 | 0.71 |
| EV/EBITDA | 11.4 | 15.4 |
| Revenue growth | +20.5% | +11.2% |
| Gross margin | 11.5% | — |
| Operating margin | 3.8% | 4.8% |
| Net margin | 2.2% | 2.8% |
| Return on equity | 10.7% | 13.2% |
| Return on assets | 2.0% | 4.0% |
| Return on invested capital | 8.5% | 9.3% |
| FCF yield | 2.7% | 1.3% |
| Debt / equity | 0.36 | 1.13 |
| Current ratio | 1.24 | 2.12 |
| Altman Z (solvency) | 7.44 | 3.19 |
| Piotroski F (quality) | 6 / 9 | 7 / 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.