Analyzing Electronics for Imaging (EFII) & PC Connection (CNXN)

Electronics for Imaging (NASDAQ: EFII) and PC Connection (NASDAQ:CNXN) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Electronics for Imaging and PC Connection, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electronics for Imaging 1 2 10 0 2.69
PC Connection 0 0 1 0 3.00

Electronics for Imaging currently has a consensus price target of $51.00, indicating a potential upside of 22.63%. PC Connection has a consensus price target of $33.00, indicating a potential upside of 26.63%. Given PC Connection’s stronger consensus rating and higher probable upside, analysts plainly believe PC Connection is more favorable than Electronics for Imaging.

Valuation & Earnings

This table compares Electronics for Imaging and PC Connection’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Electronics for Imaging $988.02 million 1.95 $121.81 million $0.98 42.44
PC Connection $2.86 billion 0.24 $90.07 million $1.79 14.56

Electronics for Imaging has higher revenue, but lower earnings than PC Connection. PC Connection is trading at a lower price-to-earnings ratio than Electronics for Imaging, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Electronics for Imaging and PC Connection’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electronics for Imaging 4.70% 5.58% 3.07%
PC Connection 1.66% 11.39% 7.37%

Risk & Volatility

Electronics for Imaging has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, PC Connection has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Insider & Institutional Ownership

41.4% of PC Connection shares are held by institutional investors. 1.9% of Electronics for Imaging shares are held by insiders. Comparatively, 57.3% of PC Connection shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

PC Connection beats Electronics for Imaging on 9 of the 14 factors compared between the two stocks.

Electronics for Imaging Company Profile

Electronics For Imaging, Inc. is engaged in digital printing, focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog-based printing to digital on-demand printing. It operates through three segments. The Industrial Inkjet segment consists of its VUTEk and Matan super-wide and wide format display graphics, Reggiani textile, Jetrion label and packaging and Cretaprint ceramic tile decoration and construction material industrial digital inkjet printers; ceramic, water-based, and thermoforming ink, and digital inkjet printer parts, and professional services. The Productivity Software segment consists of a software suite that enables automated end-to-end business and production workflows for the print and packaging industry. The Fiery segment consists of digital front ends that transform digital copiers and printers into networked printing devices for the office, industrial and commercial printing markets.

PC Connection Company Profile

PC Connection, Inc. is a provider of a range of information technology (IT) solutions. The Company conducts its business operations through three business segments: small- to medium-sized businesses (SMB), Large Account and Public Sector. The Company enables customers to design, enable, manage and service their IT environments. The Company’s IT products include computer systems, software and peripheral equipment, networking communications, and other products and accessories that the Company purchases from manufacturers, distributors and other suppliers. The Company also offers services involving design, configuration and implementation of IT solutions. The Company markets its products and services through its Websites, including www.connection.com, www.connection.com/enterprise, www.connection.com/publicsector, and www.macconnection.com. It uses a combination of outbound telemarketing, including some on-site sales solicitation by business development managers.

Receive News & Ratings for Electronics for Imaging Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Electronics for Imaging Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply