ARW vs WT: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
ARW is the larger of the two ($10.93B market cap): the incumbent the market prices for continued execution (8.98x forward earnings, beta 1.17). WT is the smaller challenger ($3.24B), actually pricier on forward earnings (16.07x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
ARW vs WT: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ARW | WT | What it tells you |
|---|---|---|---|
| Market cap | $10.93B | $3.24B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 8.98 | 16.07 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 13.73 | 38.89 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.17 | 1.17 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 76% of range | 70% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.56 | 7.56 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: ARW is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how ARW and WT affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ARW and WT share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ARW and WT exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Arrow Electronics (ARW) do?
Arrow Electronics is one of the world's largest distributors of electronic components and enterprise computing solutions. It operates two segments: Global Components, which sells semiconductors, passives, interconnect, and related parts from manufacturers to hundreds of thousands of original equipment and contract manufacturers, and Global Enterprise Computing Solutions (ECS), which resells servers, storage, software, security, and cloud services through channel partners. The company sits in the middle of the supply chain, adding value through design support, logistics, inventory management, and financing rather than owning its own products.
What does WisdomTree (WT) do?
WisdomTree is a New York-based global asset manager that designs and runs exchange-traded products, primarily ETFs, across equities, fixed income, commodities, currencies, and model portfolios. Like other ETF sponsors, it earns advisory fees calculated as a percentage of assets under management, so its revenue scales with the size of its funds. Growth comes from two sources: net inflows into its products (organic growth) and the appreciation of the assets already in those funds (market growth). WisdomTree differentiates through self-indexed and factor-based strategies rather than competing head-on as a pure low-cost passive provider, which lets it charge somewhat higher fees than the largest index giants.
ARW vs WT: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ARW drivers: Components cycle recovery; Enterprise computing and cloud.
- WT drivers: Record AUM and strong organic flows; Operating leverage and margin expansion.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: As a thin-margin distributor, Arrow's profitability is highly sensitive to the electronic components inventory cycle, pricing, and demand swings, and a downturn can compress already low operating margins quickly. For WT, the central risk is that WisdomTree's fee revenue is tied to AUM, so a market downturn or a reversal in fund flows would cut earnings directly, and outflows can compound the effect of falling markets.
ARW or WT: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ARW if you believe its drivers more; WT if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ARW and WT guides.
ARW vs WT: the full fundamentals
ARW. Arrow trades at distributor-style multiples: about 13.9 times trailing earnings, 9.1 times forward estimates and roughly 0.31 times sales. Those multiples sit on thin operating margins near 4% on very large revenue. The share price has nearly doubled in 2026 as revenue growth of more than 30% and repeated EPS beats lifted earnings, so the low multiple now rests on whether 2027 estimates (about $23.92 per share) hold through the cycle. The low sales multiple is normal for a high-volume, low-margin distribution model rather than a sign of distress.
WT. Figures are approximate and tied to the asOf date; confirm current numbers before acting. WisdomTree's fundamentals have clearly improved (near-record AUM, revenue up about 57% in Q2 2026, four straight EPS beats), and the market has priced much of it in with a 68% year-to-date gain. The gap between a 38x trailing GAAP multiple and a 16x forward multiple reflects noisy non-operating items, so AUM, flows and adjusted margins remain the better read; Q3 results arrive October 30.
Headline figures (approximate, October 2026): ARW shows revenue (ttm) ~$35.9B, q2 2026 revenue ~$9.99B (up ~32% YoY), operating / net margin ~4.0% / ~2.3%, net income (ttm) ~$812M; WT shows assets under management ~$168.9 billion at September 30, 2026 (~$175.8 billion including Ceres), net inflows (2026 ytd) ~$13.5 billion through September, revenue (ttm) ~$610 million; Q2 2026 ~$177 million, up ~57% YoY, net income (ttm) ~$80 million (GAAP).
The bottom line: ARW vs WT
ARW and WT are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ARW and WT exposure against your real portfolio. It is not an investment adviser.
Wondering how ARW or WT fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Arrow Electronics with AI
Connect the broker you already use and ask Walnut's AI how ARW fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ARW and WT?
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Arrow Electronics is one of the world's largest distributors of electronic components and enterprise computing solutions. WisdomTree is a New York-based global asset manager that designs and runs exchange-traded products, primarily ETFs, across equities, fixed income, commodities, currencies, and model portfolios. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ARW or WT the better stock?
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Neither is universally better. ARW is the larger incumbent; WT is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ARW or WT?
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On forward P/E (as of October 2026), ARW trades at 8.98x and WT at 16.07x, so ARW is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ARW and WT?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ARW vs WT?
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ARW: As a thin-margin distributor, Arrow's profitability is highly sensitive to the electronic components inventory cycle, pricing, and demand swings, and a downturn can compress already low operating margins quickly. Competition is intense from Avnet, WT Microelectronics (which acquired Future Electronics), WPG Holdings, and catalog players like Digi-Key and Mouser, pressuring share and margins. The business carries large inventories and receivables, so working-capital and credit risk rise in slowdowns. Foreign-exchange exposure and global trade or tariff shifts affect a company with significant international sales. Finally, ECS faces the long-term risk that customers shift IT spending toward direct cloud consumption, bypassing traditional resellers. After a near-doubling of the share price in 2026, the stock is also more exposed to any sign that the components upcycle is peaking, since forward estimates already assume EPS growth of about 96% in 2026. WT: The central risk is that WisdomTree's fee revenue is tied to AUM, so a market downturn or a reversal in fund flows would cut earnings directly, and outflows can compound the effect of falling markets. Fee compression across the ETF industry is a structural headwind, as investors keep pushing toward the lowest-cost products offered by far larger rivals like BlackRock, Vanguard, and State Street. The digital-assets and tokenization business, while promising, is still small, unprofitable historically, and exposed to shifting crypto regulation and adoption uncertainty, so it may not pay off on the timeline bulls expect. WisdomTree is also a mid-sized manager competing against giants with vastly greater scale and distribution, and it carries meaningful debt (about $1.08 billion against roughly $332 million of cash at June 30, 2026) and reported GAAP losses in periods affected by non-operating items, so headline earnings can be noisy even when the underlying fee business is growing. After a roughly 68% gain in 2026, the stock trades near 38 times trailing GAAP earnings and 16 times forward estimates, so a slowdown in flows or a market pullback like September's AUM dip could weigh on the shares.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ARW or WT; figures are approximate and dated (as of October 2026). Verify current data before investing.