Analyzing ScanSource (SCSC) & SMART Technologies (SMT)

ScanSource (NASDAQ: SCSC) and SMART Technologies (NASDAQ:SMT) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ScanSource and SMART Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ScanSource 0 2 0 0 2.00
SMART Technologies 0 0 0 0 N/A

ScanSource currently has a consensus price target of $48.50, indicating a potential upside of 37.98%. Given ScanSource’s higher probable upside, analysts plainly believe ScanSource is more favorable than SMART Technologies.

Valuation & Earnings

This table compares ScanSource and SMART Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ScanSource $3.57 billion 0.25 $69.24 million $2.30 15.28
SMART Technologies N/A N/A N/A ($5.45) -0.82

ScanSource has higher revenue and earnings than SMART Technologies. SMART Technologies is trading at a lower price-to-earnings ratio than ScanSource, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ScanSource and SMART Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ScanSource 1.65% 8.78% 4.13%
SMART Technologies -9.52% N/A -17.44%

Institutional & Insider Ownership

94.4% of ScanSource shares are owned by institutional investors. Comparatively, 11.7% of SMART Technologies shares are owned by institutional investors. 2.4% of ScanSource shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

ScanSource beats SMART Technologies on 9 of the 9 factors compared between the two stocks.

ScanSource Company Profile

ScanSource, Inc. is a provider of technology products and solutions. The Company and its subsidiaries provide solutions for technology manufacturers and sell to resellers in technology markets, such as point-of-sale (POS) and Barcode, Networking and Security, Communications and Emerging Technologies. It operates through two segments: Worldwide Barcode & Security and Worldwide Communications & Services. The Barcode & Security distribution segment focuses on automatic identification and data capture (AIDC), POS, electronic physical security and three dimensional (3D) printing technologies. The Communications & Services distribution segment focuses on communications technologies and services. As of June 30, 2016, the Company marketed over 100,000 products from approximately 400 hardware and software vendors to approximately 35,000 reseller customers from distribution centers in Mississippi, Virginia, Florida, Mexico, Colombia, Brazil, Belgium, France, Germany and the United Kingdom.

SMART Technologies Company Profile

SMART Technologies Inc. (SMART) is a provider of technology solutions. SMART solutions include large-format displays, collaboration software and services that enable teaching, learning and work experiences in schools and workplaces. Its hardware and software products for the education market include SMART Board interactive flat panels, SMART kapp digital capture board, SMART Board interactive whiteboards, SMART Learning Suite Software, SMART Notebook collaborative learning software, SMART lab, SMART response 2, SMART amp collaborative learning software and SMART Exchange. It offers a range of visual collaboration solutions, consisting of software combined with touch-sensitive interactive displays and remote conferencing capabilities. Its hardware and software products for the enterprise market include SMART kapp iQ and SMART kapp iQ Pro, kapp digital capture board, SMART Room System for Microsoft Skype for Business, SMART Meeting Pro software and Bridgit conferencing software.

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