Comparing PCM (PCMI) and Its Rivals

PCM (NASDAQ: PCMI) is one of 20 publicly-traded companies in the “Catalog & mail-order houses” industry, but how does it contrast to its competitors? We will compare PCM to similar businesses based on the strength of its profitability, analyst recommendations, valuation, earnings, risk, institutional ownership and dividends.

Earnings and Valuation

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This table compares PCM and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PCM $2.19 billion $3.09 million 8.47
PCM Competitors $13.26 billion $329.84 million 35.57

PCM’s competitors have higher revenue and earnings than PCM. PCM is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares PCM and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PCM 0.14% 11.33% 2.21%
PCM Competitors -0.91% -1,897.02% -2.41%

Institutional and Insider Ownership

57.6% of PCM shares are held by institutional investors. Comparatively, 51.8% of shares of all “Catalog & mail-order houses” companies are held by institutional investors. 24.0% of PCM shares are held by company insiders. Comparatively, 35.8% of shares of all “Catalog & mail-order houses” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for PCM and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PCM 0 0 2 0 3.00
PCM Competitors 107 502 1897 48 2.74

PCM currently has a consensus price target of $12.00, indicating a potential upside of 31.15%. As a group, “Catalog & mail-order houses” companies have a potential upside of 10.60%. Given PCM’s stronger consensus rating and higher probable upside, research analysts clearly believe PCM is more favorable than its competitors.

Volatility and Risk

PCM has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, PCM’s competitors have a beta of 1.72, indicating that their average share price is 72% more volatile than the S&P 500.

Summary

PCM beats its competitors on 7 of the 13 factors compared.

About PCM

PCM, Inc., through its subsidiaries, operates as a multi-vendor provider of technology products and solutions in the United States and the rest of Europe. The company operates through four segments: Commercial, Public Sector, Canada, and United Kingdom. It primarily sells device products, servers, storage products, network products, printers, and related accessories and devices. The company also provides managed services, cloud-based services, consulting, IT management and other IT services, and technical certifications and operational expertise in various practice areas; and selection, implementation, and IT solutions comprising security, virtualization, data services, unified communications, and infrastructure, as well as software asset management and software value-added reseller services. PCM, Inc. markets its products, services, and solutions to individuals; commercial businesses; state, local, and federal governments; and educational institutions through its sales force, e-commerce channels, and technology services teams, as well as cloud data centers, field services organizations, and online extranets. The company was formerly known as PC Mall, Inc. and changed its name to PCM, Inc. in December 2012. PCM, Inc. was founded in 1987 and is headquartered in El Segundo, California.

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