ARW (Arrow Electronics Inc) vs S&P 500 Comparison

ARW

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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ARW

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

ARW

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

ARW

CDW

SNX

000938

NSIT

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Arrow Electronics Inc
Glance View

Economic Moat

None

Market Cap

6B USD

Industry

Electrical Equipment

Arrow Electronics Inc., a Fortune 500 company headquartered in Centennial, Colorado, unfolds its narrative as a global powerhouse in the realm of electronic components and solutions. At its core, Arrow functions as a distributor and value-added service provider, linking a vast array of manufacturers with both commercial and industrial customers. Its business model pivots around sourcing components such as semiconductors, passive and electromechanical devices, and computing solutions from a network of over 1,000 suppliers. Arrow then leverages its extensive logistics capabilities and technological expertise to deliver these critical parts to businesses operating in diverse sectors—ranging from aerospace and automotive to telecommunications and healthcare. This seamless blend of distribution and services underpins its role in facilitating innovation and driving the supply chains of cutting-edge technologies. What sets Arrow Electronics apart is its astute approach to integrating services and solutions that go beyond mere distribution. The company caters to the intricate needs of its customers by offering design engineering, materials planning, and logistics services—endeavoring to transform abstract concepts into functional products, thus embedding itself deeper into clients' operational processes. This value-added approach extends to advanced computing capabilities, including cloud-based services and the Internet of Things (IoT), which further solidifies Arrow's position at the frontier of technological evolution. Revenue streams flourish through this intricate mosaic of products and services, where Arrow excels not just as a middleman but as a pivotal partner in the lifecycle of electronic product development and deployment. This intricate business model ensures that Arrow Electronics remains a critical node in the ever-expanding network of global technology supply chains.

View ARW Analysis

ARW Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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US		CDW Corp NASDAQ:CDW	Select
ZA	D	Datatec Ltd JSE:DTC	Select
US		TD Synnex Corp NYSE:SNX	Select
CN		Unisplendour Corp Ltd SZSE:000938	Select
US		Insight Enterprises Inc NASDAQ:NSIT	Select
US		Avnet Inc NASDAQ:AVT	Select
TW		WT Microelectronics Co Ltd TWSE:3036	Select
TW		Synnex Technology International Corp TWSE:2347	Select
TW		WPG Holdings Ltd TWSE:3702	Select
JP		Canon Marketing Japan Inc TSE:8060	Select

US		CDW Corp NASDAQ:CDW	Add
ZA	D	Datatec Ltd JSE:DTC	Add
US		TD Synnex Corp NYSE:SNX	Add
CN		Unisplendour Corp Ltd SZSE:000938	Add
US		Insight Enterprises Inc NASDAQ:NSIT	Add
US		Avnet Inc NASDAQ:AVT	Add
TW		WT Microelectronics Co Ltd TWSE:3036	Add
TW		Synnex Technology International Corp TWSE:2347	Add
TW		WPG Holdings Ltd TWSE:3702	Add
JP		Canon Marketing Japan Inc TSE:8060	Add

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ARW

vs

S&P 500

Stocks Performance
ARW vs S&P 500

Performance Gap
ARW vs S&P 500

Performance By Year
ARW vs S&P 500

Competitors Performance
Arrow Electronics Inc vs Peers

Arrow Electronics Inc
Glance View

Company

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ARW vs S&P 500

Stocks Performance ARW vs S&P 500

Performance Gap ARW vs S&P 500

Performance By Year ARW vs S&P 500

Competitors Performance Arrow Electronics Inc vs Peers

Arrow Electronics Inc Glance View

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Stocks

ARW

vs

S&P 500

Stocks Performance
ARW vs S&P 500

Performance Gap
ARW vs S&P 500

Performance By Year
ARW vs S&P 500

Competitors Performance
Arrow Electronics Inc vs Peers

Arrow Electronics Inc
Glance View