PC Connection (CNXN) vs. Silicon Graphics International (SGI) Head-To-Head Analysis

PC Connection (NASDAQ: CNXN) and Silicon Graphics International (NASDAQ:SGI) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Valuation and Earnings

This table compares PC Connection and Silicon Graphics International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PC Connection $2.69 billion 0.27 $48.11 million $1.77 15.23
Silicon Graphics International N/A N/A N/A ($0.32) -24.22

PC Connection has higher revenue and earnings than Silicon Graphics International. Silicon Graphics International is trading at a lower price-to-earnings ratio than PC Connection, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PC Connection and Silicon Graphics International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PC Connection 0 0 1 0 3.00
Silicon Graphics International 0 0 2 0 3.00

PC Connection currently has a consensus price target of $33.00, suggesting a potential upside of 22.45%. Silicon Graphics International has a consensus price target of $2.15, suggesting a potential downside of 72.26%. Given PC Connection’s higher possible upside, analysts plainly believe PC Connection is more favorable than Silicon Graphics International.

Institutional & Insider Ownership

41.2% of PC Connection shares are owned by institutional investors. Comparatively, 80.9% of Silicon Graphics International shares are owned by institutional investors. 57.3% of PC Connection shares are owned by company insiders. Comparatively, 3.9% of Silicon Graphics International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares PC Connection and Silicon Graphics International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PC Connection 1.63% 10.84% 7.06%
Silicon Graphics International 0.11% 0.98% 0.15%

Summary

PC Connection beats Silicon Graphics International on 7 of the 9 factors compared between the two stocks.

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.

Silicon Graphics International Company Profile

Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.

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