Electronics For Imaging (NASDAQ: EFII) and ScanSource (NASDAQ:SCSC) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Risk & Volatility
Electronics For Imaging has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, ScanSource has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Electronics For Imaging and ScanSource, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electronics For Imaging||2||4||7||0||2.38|
Electronics For Imaging currently has a consensus target price of $43.00, indicating a potential upside of 38.80%. ScanSource has a consensus target price of $48.50, indicating a potential upside of 34.91%. Given Electronics For Imaging’s stronger consensus rating and higher probable upside, equities analysts clearly believe Electronics For Imaging is more favorable than ScanSource.
This table compares Electronics For Imaging and ScanSource’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electronics For Imaging||3.09%||3.67%||2.01%|
Earnings and Valuation
This table compares Electronics For Imaging and ScanSource’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Electronics For Imaging||$992.07 million||1.43||$45.54 million||$0.66||46.94|
|ScanSource||$3.57 billion||0.26||$69.24 million||$2.30||15.63|
ScanSource has higher revenue and earnings than Electronics For Imaging. ScanSource is trading at a lower price-to-earnings ratio than Electronics For Imaging, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.4% of ScanSource shares are held by institutional investors. 1.9% of Electronics For Imaging shares are held by company insiders. Comparatively, 2.4% of ScanSource shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
About Electronics For Imaging
Electronics For Imaging, Inc. is engaged in digital printing, focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog-based printing to digital on-demand printing. It operates through three segments. The Industrial Inkjet segment consists of its VUTEk and Matan super-wide and wide format display graphics, Reggiani textile, Jetrion label and packaging and Cretaprint ceramic tile decoration and construction material industrial digital inkjet printers; ceramic, water-based, and thermoforming ink, and digital inkjet printer parts, and professional services. The Productivity Software segment consists of a software suite that enables automated end-to-end business and production workflows for the print and packaging industry. The Fiery segment consists of digital front ends that transform digital copiers and printers into networked printing devices for the office, industrial and commercial printing markets.
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.
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