Financial Contrast: Arrow Electronics (NYSE:ARW) vs. Otsuka (OTCMKTS:OSUKF)

Arrow Electronics (NYSE:ARW) and Otsuka (OTCMKTS:OSUKF) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Profitability

This table compares Arrow Electronics and Otsuka’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arrow Electronics	3.35%	22.19%	5.92%
Otsuka	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Arrow Electronics and Otsuka, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arrow Electronics	1	4	1	0	2.00
Otsuka	1	0	0	0	1.00

Arrow Electronics currently has a consensus price target of $129.57, suggesting a potential downside of 0.23%. Given Arrow Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Arrow Electronics is more favorable than Otsuka.

Valuation and Earnings

This table compares Arrow Electronics and Otsuka’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arrow Electronics	$37.12 billion	0.19	$1.43 billion	$19.65	6.61
Otsuka	N/A	N/A	N/A	N/A	N/A

Arrow Electronics has higher revenue and earnings than Otsuka.

Institutional & Insider Ownership

94.8% of Arrow Electronics shares are held by institutional investors. 1.1% of Arrow Electronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Arrow Electronics beats Otsuka on 9 of the 9 factors compared between the two stocks.

About Arrow Electronics

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. 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, including 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, such as datacenter, 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.

About Otsuka

Otsuka Corporation, together with its subsidiaries, engages in the provision of system integration, support, and other services in Japan. The System Integration Business segment offers management systems and collaborative software, such as ERP packages and groupware to cover a range of specialized fields, including CAD and web technologies; and provides software, hardware, intranet, and security products for the construction and expansion of computer networks, as well as intermediary services between manufacturers and system integrators. The segment also sells computers, copiers, and communications equipment and software; and develops consigned software. The Service and Support Business segment involved in the provision of emergency computer rescue services for corporate and individual clients; coordination of multi-vendor efforts consisting of pick-up, repair, and return of computers. The segment also offers 24/7 network support and comprehensive services for planning, design, construction, and operation of corporate information systems, as well as out-sources system engineers. It also provides educational support services. The company was founded in 1961 and is headquartered in Tokyo, Japan.