PC Connection Inc (CNXN)vsScanSource Inc (SCSC)
CNXN
PC Connection Inc
$86.50
-2.35%
TECHNOLOGY · Cap: $2.25B
SCSC
ScanSource Inc
$59.44
-2.96%
TECHNOLOGY · Cap: $1.23B
Smart Verdict
WallStSmart Research — data-driven comparison
ScanSource Inc generates 8% more annual revenue ($3.23B vs $2.99B). CNXN leads profitability with a 3.2% profit margin vs 2.4%. SCSC appears more attractively valued with a PEG of 0.83. SCSC earns a higher WallStSmart Score of 66/100 (B-).
CNXN
Buy61
out of 100
Grade: C+
SCSC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CNXN.
Margin of Safety
+9.0%
Fair Value
$38.10
Current Price
$59.44
$21.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 35.1% YoY
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
17.3% revenue growth
Areas to Watch
Expensive relative to growth rate
3.2% margin — thin
Weak financial health signals
Negative free cash flow — burning cash
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 3.5%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : CNXN
The strongest argument for CNXN centers on Debt/Equity, Altman Z-Score, Price/Book. Revenue growth of 12.4% demonstrates continued momentum.
Bull Case : SCSC
The strongest argument for SCSC centers on Price/Book, Altman Z-Score, Debt/Equity. Revenue growth of 17.3% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : CNXN
The primary concerns for CNXN are PEG Ratio, Profit Margin, Piotroski F-Score. Thin 3.2% margins leave little buffer for downturns.
Bear Case : SCSC
The primary concerns for SCSC are Market Cap, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
CNXN profiles as a value stock while SCSC is a growth play — different risk/reward profiles.
SCSC carries more volatility with a beta of 1.25 — expect wider price swings.
SCSC is growing revenue faster at 17.3% — sustainability is the question.
SCSC generates stronger free cash flow (-5M), providing more financial flexibility.
Bottom Line
SCSC scores higher overall (66/100 vs 61/100) and 17.3% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
PC Connection Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
PC Connection, Inc., provides a range of information technology (IT) solutions. The company is headquartered in Merrimack, New Hampshire.
Visit Website →ScanSource Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. The company is headquartered in Greenville, South Carolina.
Visit Website →Compare with Other ELECTRONICS & COMPUTER DISTRIBUTION Stocks
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