ScanSource (NASDAQ: SCSC) and SMART Technologies (NASDAQ:SMT) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and 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|
This is a summary of current ratings and price targets for ScanSource and SMART Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ScanSource presently has a consensus target price of $48.50, suggesting a potential upside of 37.78%. Given ScanSource’s higher probable upside, research analysts plainly believe ScanSource is more favorable than SMART Technologies.
Insider and Institutional Ownership
94.4% of ScanSource shares are held by institutional investors. Comparatively, 11.7% of SMART Technologies shares are held by institutional investors. 2.4% of ScanSource shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares ScanSource and SMART Technologies’ gross revenue, earnings per share 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||15.30|
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.
ScanSource beats SMART Technologies on 9 of the 9 factors compared between the two stocks.
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.
About SMART Technologies
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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