Critical Comparison: NOVONIX (OTCMKTS:NVNXF) vs. Arrow Electronics (NYSE:ARW)

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

Earnings and Valuation

This table compares NOVONIX and Arrow Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$5.85 million	N/A	-$74.82 million	N/A	N/A
Arrow Electronics	$27.92 billion	0.25	$392.07 million	$7.26	18.18

Arrow Electronics has higher revenue and earnings than NOVONIX.

Insider and Institutional Ownership

99.3% of Arrow Electronics shares are held by institutional investors. 6.6% of NOVONIX shares are held by insiders. Comparatively, 0.8% of Arrow Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

NOVONIX has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Arrow Electronics has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NOVONIX	N/A	N/A	N/A
Arrow Electronics	1.40%	8.97%	2.52%

Analyst Ratings

This is a breakdown of recent ratings for NOVONIX and Arrow Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NOVONIX	0	0	0	0	0.00
Arrow Electronics	2	1	1	0	1.75

Arrow Electronics has a consensus target price of $115.75, indicating a potential downside of 12.28%. Given Arrow Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Arrow Electronics is more favorable than NOVONIX.

Summary

Arrow Electronics beats NOVONIX on 9 of the 11 factors compared between the two stocks.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.

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 electronic components comprising semiconductor products and related services; interconnect, passive, and electromechanical 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 also 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.