Systemax (NYSE: SYX) and PCM (NASDAQ:PCMI) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.
This table compares Systemax and PCM’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Systemax and PCM’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Systemax||$1.71 billion||0.52||$42.30 million||($0.35)||-69.09|
|PCM||$2.26 billion||0.07||$45.75 million||$1.29||10.04|
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.
Systemax pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. PCM does not pay a dividend. Systemax pays out -114.3% of its earnings in the form of a dividend.
Risk & Volatility
Systemax has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, PCM has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Insider & Institutional 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 company insiders. Comparatively, 24.0% of PCM shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Systemax and PCM, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Systemax presently has a consensus price target of $31.00, suggesting a potential upside of 28.21%. PCM has a consensus price target of $33.50, suggesting a potential upside of 158.69%. Given PCM’s higher possible upside, analysts plainly believe PCM is more favorable than Systemax.
PCM beats Systemax on 9 of the 15 factors compared between the two stocks.
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, 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.
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