Contrasting Cool (OTCMKTS:AWSM) & Arrow Electronics (OTCMKTS:ARW)

Cristopher Centers

Cool (OTCMKTS:AWSM) and Arrow Electronics (NYSE:ARW) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk. Volatility & Risk Cool has a beta of 1.5, suggesting […]

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

Volatility & Risk

Cool has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Arrow Electronics has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cool 16.60% -271.40% 49.31%
Arrow Electronics 1.41% 11.39% 3.43%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cool $30.39 million 0.19 -$21.02 million N/A N/A
Arrow Electronics $28.92 billion 0.21 -$204.09 million $7.55 10.33

Cool has higher earnings, but lower revenue than Arrow Electronics.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cool and Arrow Electronics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cool 0 0 0 0 N/A
Arrow Electronics 0 5 2 0 2.29

Arrow Electronics has a consensus price target of $72.86, indicating a potential downside of 6.57%. Given Arrow Electronics’ higher probable upside, analysts plainly believe Arrow Electronics is more favorable than Cool.

Insider and Institutional Ownership

94.2% of Arrow Electronics shares are owned by institutional investors. 2.1% of Cool shares are owned by insiders. Comparatively, 1.6% of Arrow Electronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Arrow Electronics beats Cool on 6 of the 11 factors compared between the two stocks.

Cool Company Profile

Cool Holdings, Inc. markets and distributes various mobility, computing, audio/video, and other technology products. The company operates in two segments, Simply Mac Retail Stores and Cooltech Distribution Business. As of December 31, 2019, the company had 58 retail stores in operation comprised of Simply Mac, a chain of 42 stores in 17 states in the United States, and OneClick, a chain of 16 stores with 7 located in the Dominican Republic, 6 in Argentina, and 3 in Florida. The company offers laptops, tablets, cell phones, drones, smart watches, gaming consoles, accessories, and audio devices. It distributes various consumer electronics to resellers, retailers, and small and medium-sized businesses in Latin America and the United States. Cool Holdings, Inc. is headquartered in Miami, Florida.

Arrow Electronics Company Profile

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions worldwide. 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 consisting primarily of 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, including data-center, 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.

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