Financial Review: Systemax (SYX) and PCM (PCMI)

Systemax (NYSE: SYX) and PCM (NASDAQ:PCMI) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Institutional and Insider Ownership

25.2% of Systemax shares are owned by institutional investors. Comparatively, 62.6% of PCM shares are owned by institutional investors. 69.6% of Systemax shares are owned by insiders. Comparatively, 24.0% of PCM shares are owned by 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.

Dividends

Systemax pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. PCM does not pay a dividend. Systemax pays out -114.3% of its earnings in the form of a dividend.

Profitability

This table compares Systemax and PCM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Systemax -0.87% 12.27% 5.14%
PCM 0.73% 17.32% 3.51%

Valuation and Earnings

This table compares Systemax and PCM’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Systemax $1.71 billion 0.54 $42.30 million ($0.35) -71.54
PCM $2.26 billion 0.07 $45.75 million $1.29 10.16

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

Volatility and Risk

Systemax has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, PCM has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Systemax and PCM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Systemax 0 0 1 0 3.00
PCM 0 0 2 0 3.00

Systemax currently has a consensus price target of $31.00, suggesting a potential upside of 23.80%. PCM has a consensus price target of $33.50, suggesting a potential upside of 155.73%. Given PCM’s higher probable upside, analysts plainly believe PCM is more favorable than Systemax.

Summary

PCM beats Systemax on 9 of the 14 factors compared between the two stocks.

Systemax Company Profile

Systemax Inc. is a direct marketer of brand name and private label products. The Company’s segments are Industrial Products Group (IPG), EMEA Technology Products Group (EMEA), and Corporate and Other (Corporate). The IPG segment sells an array of maintenance, repair and operational (MRO) products, which are marketed in North America. The Company offers a selection of products that are manufactured for its own design and marketed under the trademarks: Global, GlobalIndustrial.com, Nexel Relius, Paramount and Interion. EMEA sells products categorized as Information and Communications Technology (ICT) and Consumer Electronics (CE), as well as related technical services, such as configuration, implementation, network security, and other technical services. CE products include television and video; audio; cameras and surveillance; Global Positioning System (GPS); cell phones; video games, and home and electronics accessories.

PCM Company Profile

PCM, Inc. is a multi-vendor provider of technology solutions, including hardware products, software and services, offered through its dedicated sales force, field and internal service teams, direct marketing channels, and owned and operated data centers. The Company’s segments include Commercial, Public Sector and Canada. The Commercial segment sells complex technology solutions to commercial businesses in the United States. It sells its products using multiple sales channels, including a field relationship-based selling model, an outbound phone-based sales force, a field services organization and an online extranet. The Public Sector segment consists of sales made to federal, state and local governments, as well as educational institutions. The Public Sector segment utilizes a phone and field relationship-based selling model, as well as contract and bid business development teams and an online extranet. The Canada segment consists of sales made to customers in the Canadian market.

Receive News & Ratings for Systemax Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Systemax Inc. and related companies with our FREE daily email newsletter.

 


Latest News

American League Once Again Dominates National League
American League Once Again Dominates National League
Los Angeles Dodgers Waiting But Magic Number Down to One
Los Angeles Dodgers Waiting But Magic Number Down to One
Young Girl Hit by Foul Ball Rushed to Hospital
Young Girl Hit by Foul Ball Rushed to Hospital
New Home Run Record Reached in Major League Baseball
New Home Run Record Reached in Major League Baseball
Will 2017 MLB Season End with No 20-Game Winner?
Will 2017 MLB Season End with No 20-Game Winner?
Cleveland Indians Winning Streak Snapped at 22
Cleveland Indians Winning Streak Snapped at 22


Leave a Reply

 
© 2006-2017 BBNS.