CUI Global (CUI) versus Arrow Electronics (ARW) Head to Head Contrast

CUI Global (NASDAQ: CUI) and Arrow Electronics (NYSE:ARW) are both industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Risk & Volatility

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CUI Global has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Arrow Electronics has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Insider & Institutional Ownership

52.6% of CUI Global shares are owned by institutional investors. Comparatively, 93.7% of Arrow Electronics shares are owned by institutional investors. 5.2% of CUI Global shares are owned by insiders. Comparatively, 1.3% of Arrow Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares CUI Global and Arrow Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CUI Global -15.12% -16.70% -9.79%
Arrow Electronics 1.50% 14.12% 4.59%

Earnings & Valuation

This table compares CUI Global and Arrow Electronics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CUI Global $83.28 million 0.92 -$12.58 million ($0.35) -7.71
Arrow Electronics $26.81 billion 0.25 $401.96 million $7.56 10.19

Arrow Electronics has higher revenue and earnings than CUI Global. CUI Global is trading at a lower price-to-earnings ratio than Arrow Electronics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CUI Global and Arrow Electronics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CUI Global 0 0 3 0 3.00
Arrow Electronics 0 1 2 1 3.00

CUI Global currently has a consensus target price of $25.33, indicating a potential upside of 838.27%. Arrow Electronics has a consensus target price of $89.50, indicating a potential upside of 16.13%. Given CUI Global’s higher possible upside, equities analysts plainly believe CUI Global is more favorable than Arrow Electronics.

Summary

Arrow Electronics beats CUI Global on 10 of the 14 factors compared between the two stocks.

About CUI Global

CUI Global, Inc., through its subsidiaries, engages in the acquisition, development, and commercialization of power and electromechanical components worldwide. The company operates through two segments, Power and Electro-Mechanical, and Energy. The Power and Electromechanical segment offers components, including connectors, speakers, buzzers, test and measurement devices, and control solutions comprising encoders and sensors; and power solutions, such as Novum and ICE Block that addresses power and related accessories to consumer electronics, medical, and defense industries. The Energy segment provides natural gas infrastructure and advanced technology, including metering, odorization, remote telemetry units, and a range of personalized gas engineering solutions to the gas utilities, power generation, emissions, manufacturing, and automotive industries. CUI Global, Inc. was founded in 1998 and is based in Tualatin, Oregon.

About Arrow Electronics

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions worldwide. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products consisting primarily of capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, including data-center, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.

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