LHX vs. ARW

Last updated Jun 4, 2026

LHX (L3Harris Technologies, Inc.) and ARW (Arrow Electronics, Inc.) are both stocks. LHX operates in Aerospace & Defense (Industrials), while ARW operates in Electronics & Computer Distribution (Technology). Over the past 10 years, LHX returned 16.38%/yr vs 13.44%/yr for ARW. At a 0.34 correlation, their price movements are largely independent.

Performance

LHX vs. ARW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in L3Harris Technologies, Inc. (LHX) and Arrow Electronics, Inc. (ARW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LHX achieves a 3.73% return, which is significantly lower than ARW's 108.16% return. Over the past 10 years, LHX has outperformed ARW with an annualized return of 16.38%, while ARW has yielded a comparatively lower 13.44% annualized return.

LHX

• 1D: -1.52%
• 1M: -1.68%
• YTD: 3.73%
• 6M: 9.64%
• 1Y: 26.29%
• 3Y*: 20.73%
• 5Y*: 8.42%
• 10Y*: 16.38%

ARW

• 1D: 0.42%
• 1M: 23.63%
• YTD: 108.16%
• 6M: 106.71%
• 1Y: 90.63%
• 3Y*: 21.21%
• 5Y*: 13.44%
• 10Y*: 13.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LHX vs. ARW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LHX L3Harris Technologies, Inc.	3.73%	42.28%	1.88%	3.67%	-0.48%	14.98%	-2.76%	49.21%	-3.38%	40.80%
ARW Arrow Electronics, Inc.	108.16%	-2.60%	-7.47%	16.91%	-22.12%	38.00%	14.82%	22.90%	-14.25%	12.78%

Correlation

The correlation between LHX and ARW is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (10Y) Calculated over the trailing 10-year period	0.28
Correlation (All Time) Calculated using the full available price history since Jul 20, 1984	0.34

The correlation between LHX and ARW shifts across timeframes, from 0.14 (1 year) to 0.34 (all time), reflecting how their relationship changes across market environments.

Fundamentals

EPS LHX : $12.29 ARW : $13.95
PE Ratio LHX : 24.69 ARW : 16.45
PEG Ratio LHX : 12.66 ARW : 5.24
PS Ratio LHX : 1.90 ARW : 0.36
Total Revenue (TTM) LHX : $22.48B ARW : $33.51B
Gross Profit (TTM) LHX : $5.50B ARW : $3.75B
EBITDA (TTM) LHX : $3.32B ARW : $1.18B

Return for Risk

LHX vs. ARW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LHX

LHX Risk / Return Rank: 68
LHX Sharpe Ratio Rank: 73
LHX Sortino Ratio Rank: 67
LHX Omega Ratio Rank: 65
LHX Calmar Ratio Rank: 65
LHX Martin Ratio Rank: 69

ARW

ARW Risk / Return Rank: 90
ARW Sharpe Ratio Rank: 93
ARW Sortino Ratio Rank: 92
ARW Omega Ratio Rank: 92
ARW Calmar Ratio Rank: 87
ARW Martin Ratio Rank: 86

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LHX vs. ARW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for L3Harris Technologies, Inc. (LHX) and Arrow Electronics, Inc. (ARW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	LHX	ARW	Difference
Sharpe ratio Return per unit of total volatility	1.09	2.69	-1.59
Sortino ratio Return per unit of downside risk	1.62	3.52	-1.90
Omega ratio Gain probability vs. loss probability	1.20	1.48	-0.29
Calmar ratio Return relative to maximum drawdown	1.28	3.87	-2.59
Martin ratio Return relative to average drawdown	3.62	9.31	-5.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LHX vs. ARW - Sharpe Ratio Comparison

The current LHX Sharpe Ratio is 1.09, which is lower than the ARW Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of LHX and ARW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LHX	ARW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.09	2.69	-1.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	0.46	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.65	0.46	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.19	+0.13

Drawdowns

LHX vs. ARW - Drawdown Comparison

The maximum LHX drawdown since its inception was -69.82%, smaller than the maximum ARW drawdown of -86.03%. Use the drawdown chart below to compare losses from any high point for LHX and ARW.

Drawdown Indicators

	LHX	ARW	Difference
Max Drawdown Largest peak-to-trough decline	-69.82%	-86.03%	+16.21%
Max Drawdown (1Y) Largest decline over 1 year	-20.55%	-23.54%	+2.99%
Max Drawdown (3Y) Largest decline over 3 years	-25.98%	-38.16%	+12.18%
Max Drawdown (5Y) Largest decline over 5 years	-38.16%	-38.16%	0.00%
Max Drawdown (10Y) Largest decline over 10 years	-38.16%	-52.77%	+14.61%
Current Drawdown Current decline from peak	-19.54%	0.00%	-19.54%
Average Drawdown Average peak-to-trough decline	-21.33%	-29.31%	+7.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.28%	9.77%	-2.49%

Volatility

LHX vs. ARW - Volatility Comparison

The current volatility for L3Harris Technologies, Inc. (LHX) is 6.33%, while Arrow Electronics, Inc. (ARW) has a volatility of 10.49%. This indicates that LHX experiences smaller price fluctuations and is considered to be less risky than ARW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LHX	ARW	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.33%	10.49%	-4.16%
Volatility (6M) Calculated over the trailing 6-month period	19.61%	25.77%	-6.16%
Volatility (1Y) Calculated over the trailing 1-year period	24.14%	33.97%	-9.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.89%	29.17%	-5.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.40%	29.56%	-4.16%

Dividends

LHX vs. ARW - Dividend Comparison

LHX's dividend yield for the trailing twelve months is around 1.20%, while ARW has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARW Arrow Electronics, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
LHX L3Harris Technologies, Inc.	1.20%	1.64%	2.21%	2.17%	2.15%	1.91%	1.80%	1.45%	1.86%	1.55%	2.01%	2.23%

Financials

LHX vs. ARW - Profitability Comparison

The chart below illustrates the profitability comparison between L3Harris Technologies, Inc. and Arrow Electronics, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

LHX - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, L3Harris Technologies, Inc. reported a gross profit of 1.40B and revenue of 5.74B. Therefore, the gross margin over that period was 24.4%.

ARW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Arrow Electronics, Inc. reported a gross profit of 1.09B and revenue of 9.47B. Therefore, the gross margin over that period was 11.5%.

LHX - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, L3Harris Technologies, Inc. reported an operating income of 652.00M and revenue of 5.74B, resulting in an operating margin of 11.4%.

ARW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Arrow Electronics, Inc. reported an operating income of 361.60M and revenue of 9.47B, resulting in an operating margin of 3.8%.

LHX - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, L3Harris Technologies, Inc. reported a net income of 512.00M and revenue of 5.74B, resulting in a net margin of 8.9%.

ARW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Arrow Electronics, Inc. reported a net income of 235.11M and revenue of 9.47B, resulting in a net margin of 2.5%.

Frequently Asked Questions

Can I hold both LHX and ARW in my portfolio?

LHX and ARW have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LHX or ARW?

ARW has higher volatility (10.49%) compared to LHX (6.33%). In terms of maximum drawdown, LHX dropped -69.82% vs ARW's -86.03%.

Which has better risk-adjusted returns?

ARW currently has the higher Sharpe Ratio (2.69 vs 1.09), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.