Pericom Semiconductor (NASDAQ: PSEM) and Arrow Electronics (NYSE:ARW) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitabiliy, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Pericom Semiconductor and Arrow Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pericom Semiconductor 11.19% 6.74% 5.80%
Arrow Electronics 2.20% 13.59% 4.54%

Valuation & Earnings

This table compares Pericom Semiconductor and Arrow Electronics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pericom Semiconductor N/A N/A N/A N/A N/A
Arrow Electronics $24.11 billion 0.30 $1.08 billion $5.80 13.92

Arrow Electronics has higher revenue and earnings than Pericom Semiconductor.

Analyst Ratings

This is a summary of current ratings and target prices for Pericom Semiconductor and Arrow Electronics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pericom Semiconductor 0 0 0 0 N/A
Arrow Electronics 1 2 2 0 2.20

Arrow Electronics has a consensus price target of $69.60, indicating a potential downside of 13.78%. Given Arrow Electronics’ higher probable upside, analysts clearly believe Arrow Electronics is more favorable than Pericom Semiconductor.

Insider and Institutional Ownership

94.5% of Arrow Electronics shares are owned by institutional investors. 1.2% of Arrow Electronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Arrow Electronics beats Pericom Semiconductor on 6 of the 8 factors compared between the two stocks.

Pericom Semiconductor Company Profile

Pericom Semiconductor Corporation (Pericom) designs, develops and markets integrated circuits (ICs) and frequency control products (FCPs). The Company’s IC products include functions that support the connectivity, timing and signal conditioning of high-speed parallel and serial protocols that transfer data among a system’s microprocessor, memory and various peripherals, and between interconnected systems. The Company has four primary IC product categories: connectivity, switching, timing and signal integrity. Pericom’s FCPs are electronic components that provide frequency references, such as crystals and oscillators for computer, communication and consumer electronic products. It enables serial connectivity with solutions for the computing, communications and consumer market segments. Its products are used in various applications, such as servers, storage, enterprise networks, telecommunications and embedded applications.

Arrow Electronics Company Profile

Arrow Electronics, Inc. is a provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The Company has a portfolio of product offerings available from various electronic components and enterprise computing solutions suppliers. The Company’s segments include the global components business; the global enterprise computing solutions (ECS) business, and corporate business segment. It distributes electronic components to original equipment manufacturers and contract manufacturers through its global components business segment. Through global ECS business segment, it provides enterprise computing solutions to value-added resellers. The Global components segment markets and distributes electronic components and provides a range of value-added capabilities. Global ECS’ portfolio of computing solutions includes datacenter, cloud, security, and analytics solutions.

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