Comparative Study: Insight Enterprises And Industry Competitors In Electronic Equipment, Instruments & Components Industry

Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Insight Enterprises (NASDAQ:NSIT) in comparison to its major competitors within the Electronic Equipment, Instruments & Components industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.

Insight Enterprises Background

Insight Enterprises Inc is a Fortune IT provider engaged in helping businesses of all sizes, large enterprises, governments, schools, and healthcare organizations. The company has three geographic operating segments: North America, EMEA, and APAC. It generates maximum revenue from the North America segment. The company provides digital innovation, cloud/data center transformation, connected workforce, and supply chain optimization solutions and services.

Through a detailed examination of Insight Enterprises, we can deduce the following trends:

• Notably, the current Price to Earnings ratio for this stock, 25.57, is 1.26x above the industry norm, reflecting a higher valuation relative to the industry.

• It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 3.77 which exceeds the industry average by 1.21x.

• The stock's relatively high Price to Sales ratio of 0.83, surpassing the industry average by 1.34x, may indicate an aspect of overvaluation in terms of sales performance.

• The company has a higher Return on Equity (ROE) of 3.84%, which is 1.09% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

• Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $120 Million, which is 0.86x below the industry average, potentially indicating lower profitability or financial challenges.

• Compared to its industry, the company has a similar gross profit of $440 Million, suggesting comparable profitability and cost efficiency.

• The company's revenue growth of 2.39% exceeds the industry average of -7.96%, indicating strong sales performance and market outperformance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

When assessing Insight Enterprises against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

• Insight Enterprises falls in the middle of the list when considering the debt-to-equity ratio.

• This indicates that the company has a moderate level of debt relative to its equity with a debt-to-equity ratio of 0.63, suggesting a balanced financial structure with a reasonable debt-equitymix.

Key Takeaways

The high PE, PB, and PS ratios of Insight Enterprises suggest that the company is trading at a premium compared to its peers in the Electronic Equipment, Instruments & Components industry. On the other hand, the high ROE and revenue growth indicate strong performance relative to its competitors. However, the low EBITDA and equal gross profit may raise concerns about the company's operational efficiency and profitability compared to industry standards.

This article was generated by Benzinga's automated content engine and reviewed by an editor.