CNXN vs NSIT: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
NSIT is the larger of the two ($4.38B market cap): the incumbent the market prices for continued execution (11.27x forward earnings, beta 1.07). CNXN is the smaller challenger ($2.11B), actually pricier on forward earnings (18.75x): 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.
CNXN vs NSIT: the tie-breaker metrics
Same yardstick, side by side (as of August 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 | CNXN | NSIT | What it tells you |
|---|---|---|---|
| Market cap | $2.11B | $4.38B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 18.75 | 11.27 | 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 | 22.15 | 22.12 | 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 | 0.88 | 1.07 | 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 | 86% of range | 91% 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 | 2.22 | 2.75 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: NSIT 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 CNXN and NSIT 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. CNXN and NSIT 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 CNXN and NSIT 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 Connection (CNXN) do?
Connection, Inc. (Nasdaq: CNXN) is a value-added reseller and IT solutions provider that sells hardware, software, and services to businesses, government, healthcare, and education customers. It operates through three segments (Business Solutions for small and midsized companies, Enterprise Solutions for large accounts, and Public Sector Solutions for government and education) and layers on managed services, professional services, configuration, cybersecurity, cloud, and lifecycle offerings. With roughly $2.9 billion in annual revenue, about 2,600 employees, and a global procurement network reaching 174 countries, it acts as a distribution and integration partner rather than a manufacturer.
What does Insight Enterprises (NSIT) do?
Insight Enterprises, Inc. is a Chandler, Arizona solutions integrator that has been reselling and implementing information technology for 38 years. Operations are organized into three geographic reporting segments (North America, EMEA and APAC), and the company sells hardware, software and services, including cloud solutions, to three client groups: large enterprise and corporate, commercial, and public sector. In the June 2026 quarter the offering mix was roughly ~$1.44 billion of hardware, ~$447 million of software and ~$514 million of services, with North America contributing about four fifths of net sales. Recent acquisitions have pushed the company up the value chain rather than out across more product: Infocenter (a ServiceNow specialist, 2024), Inspire11 (a digital and data consultancy bought for ~$210 million in October 2025) and Sekuro (an Asia-Pacific cybersecurity firm, October 2025).
CNXN vs NSIT: 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.
- CNXN drivers: Endpoint refresh and AI-driven hardware demand; Margin mix shift toward services.
- NSIT drivers: Gross profit mix shifting toward cloud and services; The One Insight operating plan.
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: Connection is a thin-margin reseller in a crowded field, so pricing pressure and mix shifts can swing profitability quickly. For NSIT, partner incentive programs are the sharpest exposure: much of Insight's gross profit depends on vendor rebate structures it does not control, and a change at a major partner can compress margin quickly with little warning.
CNXN or NSIT: 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 CNXN if you believe its drivers more; NSIT 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 CNXN and NSIT guides.
CNXN vs NSIT: the full fundamentals
CNXN. Connection trades at a modest valuation relative to earnings, reflecting its low-growth, thin-margin reseller profile. FY2025 revenue was about $2.87 billion with net income near $84 million, and Q1 2026 beat expectations on both revenue and EPS with strong Enterprise Solutions growth. The balance sheet carries net cash and little debt, supporting the dividend and buybacks.
NSIT. Reseller economics make the revenue multiple close to meaningless here: at roughly 0.5 times net sales, NSIT screens as one of the cheapest names in technology, yet gross profit captures only about 22 cents of every dollar of that revenue. Valuing the enterprise against gross profit, at roughly ~2.9 times, or against trailing earnings, at roughly ~21 times, gives a more honest comparison to IT services peers. Because a larger share of software is now recognized net, as an agent, the reported revenue line can fall in a year when the business is getting healthier, which is what makes gross profit the better base.
Headline figures (approximate, July 2026): CNXN shows revenue (fy2025) ~$2.87B, net income (fy2025) ~$83.7M, q1 2026 revenue ~$721.9M (up ~3% YoY), q1 2026 diluted eps ~$0.68; NSIT shows net sales (ttm) ~$8.6B, gross profit (ttm) ~$1.90B (~22% of net sales), net income (ttm) ~$210M, diluted EPS ~$6.76, q2 2026 net sales / gross profit ~$2.40B (+15%) / ~$521.6M (+18%).
The bottom line: CNXN vs NSIT
CNXN and NSIT 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 CNXN and NSIT exposure against your real portfolio. It is not an investment adviser.
Wondering how CNXN or NSIT 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 Connection with AI
Connect the broker you already use and ask Walnut's AI how CNXN 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 CNXN and NSIT?
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Connection, Inc. Insight Enterprises, Inc. 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 CNXN or NSIT the better stock?
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Neither is universally better. NSIT is the larger incumbent; CNXN 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, CNXN or NSIT?
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On forward P/E (as of August 2026), CNXN trades at 18.75x and NSIT at 11.27x, so NSIT 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 CNXN and NSIT?
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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 CNXN vs NSIT?
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CNXN: Connection is a thin-margin reseller in a crowded field, so pricing pressure and mix shifts can swing profitability quickly. It competes against much larger CDW and Insight Enterprises plus privately held SHI, which have scale advantages in vendor terms and services. Revenue is closely tied to corporate and public-sector IT budgets, which can stall in a slowdown, and the business is exposed to supply-chain, tariff, and component-cost swings. The founding family's voting control limits outside shareholder influence, and the stock's low trading liquidity can amplify price moves. NSIT: Partner incentive programs are the sharpest exposure: much of Insight's gross profit depends on vendor rebate structures it does not control, and a change at a major partner can compress margin quickly with little warning. Balance-sheet debt is meaningful for a distribution-style business, with ~$1.48 billion of long-term debt largely on floating-rate facilities plus separate inventory financing, and the company has said it expects rates to stay above historical levels through most of 2026. Working capital swings are large by design, with trade accounts payable of ~$6.5 billion at June 30, 2026 against ~$4.3 billion six months earlier, so vendor terms and seasonality move the balance sheet in ways that can look alarming out of context. Integration and earnout risk is live across three acquisitions closed since 2024, and the company recorded net losses of ~$7.0 million and ~$4.5 million in the first half of 2026 from revaluing Inspire11 and Sekuro earnout liabilities. Execution risk also attaches to a new chief executive running a three-year restructuring, and tariffs, trade policy and the memory shortage all sit outside management's control. On litigation, the company stated in its most recent quarterly report that there are no material pending legal proceedings to which it is a party.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell CNXN or NSIT; figures are approximate and dated (as of August 2026). Verify current data before investing.