Quick verdict: ARW vs CAMT in 2026

Overall, Arrow Electronics (ARW) demonstrates a compelling lead in this arw vs camt stock comparison 2026, particularly regarding its valuation and potential upside, despite Camtek (CAMT) showing stronger operational margins and growth momentum. CAMT is the clear growth and margin leader, while ARW presents a more attractive value proposition and higher analyst-projected upside. For investors considering should i buy arw or camt stock 2026, ARW currently holds the edge based on its robust financial health and more conservative valuation. Not investment advice.

ARW vs CAMT: key metrics side by side

Full side-by-side comparison of ARW and CAMT across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-08.

ARW vs CAMT valuation comparison

When considering the arw vs camt valuation, Arrow Electronics (ARW) presents a significantly more attractive profile for value-oriented investors as of 2026-05-08. ARW trades at a P/E ratio of 13.41x, which is remarkably lower than Camtek’s (CAMT) P/E ratio of 173.97x. This vast difference suggests that the market is assigning a much higher growth premium to CAMT’s earnings, or that ARW’s earnings are more stable and less subject to volatility. Furthermore, ARW’s Price-to-Book (P/B) ratio stands at a modest 1.45x, indicating that its market capitalization of $9.70B is not excessively inflated relative to its book value. In contrast, CAMT’s P/B ratio is a substantially higher 14.3x, reflecting a much richer valuation for its $8.85B market cap.

A deeper dive into discounted cash flow (DCF) models further reinforces ARW’s valuation appeal. ARW’s DCF analysis suggests an impressive 18.8% upside from its current price of $189.83, with a fair value estimated at $225.45. This indicates that the stock might be undervalued according to its intrinsic cash flow generation capabilities. Conversely, CAMT’s DCF analysis points to a significant 80.5% downside, with a fair value of $37.56 compared to its current price of $193.08. This stark contrast in DCF estimations strongly positions ARW as the more fundamentally undervalued stock in this arw vs camt fundamentals and valuation assessment, while CAMT appears significantly overvalued based on its projected future cash flows.

ARW vs CAMT growth comparison

Examining the growth trajectories for Arrow Electronics (ARW) and Camtek (CAMT) reveals different stages of development and market dynamics. CAMT demonstrates stronger year-over-year revenue growth at 15.6%, outpacing ARW’s 10.5%. This higher growth rate for CAMT, a company with a revenue of $496,072,000 and a market cap of $8.85B, suggests a nimble operation with significant potential in its niche market within the technology sector. CAMT’s ability to achieve robust growth despite its relatively smaller scale indicates strong demand for its products or services and effective market penetration strategies.

However, it’s crucial to contextualize these growth rates within the companies’ respective sizes. ARW is a much larger entity, boasting a revenue of $30.85B and a market cap of $9.70B. Achieving a 10.5% growth rate on such a massive revenue base is a testament to its extensive market presence and operational efficiency, often indicating stable, sustained demand in its diversified electronics distribution and value-added services. While CAMT shows stronger percentage growth, ARW’s absolute revenue increase is considerably larger due to its sheer scale. In the arw vs camt stock comparison 2026 for growth, CAMT exhibits stronger momentum, but ARW’s growth on a much larger foundation should not be underestimated, signaling a different growth profile suitable for different investment objectives.

ARW vs CAMT profitability

When analyzing the profitability of ARW vs CAMT, Camtek (CAMT) significantly outperforms Arrow Electronics (ARW) across key margin metrics. CAMT boasts an impressive net margin of 10.22%, which is substantially higher than ARW’s net margin of 2.17%. This indicates that CAMT is far more efficient at converting its revenue into actual profit for shareholders. Similarly, CAMT’s EBITDA margin stands at a robust 25.84%, dwarfing ARW’s 3.52%. These superior margins for CAMT suggest a business model with higher pricing power, lower operational costs relative to its revenue, or a more specialized product offering with less competition pressure.

Despite CAMT’s strong margins, a closer look at Free Cash Flow (FCF) yield reveals ARW’s strength in generating cash. ARW has an FCF yield of 4.23%, indicating its ability to generate significant cash from its operations after accounting for capital expenditures. In contrast, CAMT reports an FCF yield of 0%, suggesting that it is currently reinvesting all its operating cash or has higher capital requirements, which impacts its immediate cash generation for shareholders. Both companies have N/A% for Return on Equity (ROE), meaning this metric is not available for direct comparison. Overall, while CAMT exhibits superior operational profitability through its margins, ARW demonstrates a stronger ability to generate free cash flow, which is a critical measure of financial health and flexibility.

Analyst ratings: ARW vs CAMT

The analyst community holds differing views on Arrow Electronics (ARW) and Camtek Ltd. (CAMT), reflecting their respective business models and growth prospects in this arw vs camt stock comparison 2026. For ARW, out of 17 analysts covering the stock, only 35.3% have issued a “Buy” rating. The consensus among these analysts is “Hold,” with a collective price target set at $240. This target represents a significant potential upside of +26.4% from ARW’s current price of $189.83, suggesting that even with a “Hold” consensus, analysts see considerable value appreciation potential for ARW. This outlook implies that while immediate strong conviction for a “Buy” might be limited, the stock is not seen as overvalued and has room to grow towards its intrinsic value.

Conversely, Camtek (CAMT) garners a much more bullish sentiment from a smaller pool of analysts. Out of 13 analysts, an impressive 76.9% have a “Buy” rating, leading to an overall “Buy” consensus. Despite this strong buy recommendation, the average analyst price target for CAMT is $165.6, which surprisingly indicates a -14.2% downside from its current price of $193.08. This creates a fascinating paradox: analysts largely recommend buying CAMT, yet their consensus target suggests a price depreciation. This divergence might imply a belief in CAMT’s long-term growth potential and strong fundamentals, even if its current market price has momentarily outpaced their near-term valuation models. For investors evaluating arw vs camt fundamentals and valuation, this highlights the importance of scrutinizing not just the percentage of buy ratings, but also the implied price target upside or downside.

Should I buy ARW or CAMT stock in 2026?

Deciding should I buy ARW or CAMT stock in 2026 hinges heavily on an investor’s individual strategy and risk tolerance, as both companies present distinct profiles within the technology sector. For growth-oriented investors, Camtek (CAMT) might appear more appealing at first glance due to its higher year-over-year revenue growth of 15.6% and significantly superior operational margins (Net margin 10.22%, EBITDA margin 25.84%). These figures suggest a dynamic company with strong operational efficiency and potential for continued expansion in its specialized market. However, this growth comes at a steep price, with CAMT trading at a P/E of 173.97x and a P/B of 14.3x, along with a DCF analysis indicating an 80.5% downside, suggesting it is significantly overvalued by traditional metrics.

For value investors, Arrow Electronics (ARW) presents a far more compelling case. ARW boasts a much lower P/E ratio of 13.41x and a P/B ratio of 1.45x, making it considerably cheaper on a fundamental basis compared to CAMT. Furthermore, ARW’s DCF analysis suggests an 18.8% upside, indicating potential for appreciation as the market recognizes its intrinsic value. Its robust FCF yield of 4.23% points to strong cash generation, and a lower Debt/Equity ratio of 0.37x signifies greater financial stability. While ARW’s revenue growth is slower at 10.5%, it’s growing from a massive $30.85B revenue base, which speaks to its scale and stability in the market.

Regarding income, neither ARW nor CAMT currently offers a dividend yield, as both stand at 0%. Therefore, investors seeking passive income streams would need to look elsewhere. Ultimately, the choice between these two stocks for 2026 depends on whether you prioritize high growth potential (CAMT) despite a stretched valuation, or robust value and potential upside (ARW) with more stable, albeit slower, growth. For those focused on identifying fundamentally undervalued opportunities, ARW appears to be the stronger contender in this arw vs camt fundamentals and valuation assessment, while CAMT carries higher risk due to its premium valuation. This is not investment advice.

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FAQ: ARW vs CAMT