PC Connection Inc (CNXN)vsScanSource Inc (SCSC)
CNXN
PC Connection Inc
$58.41
-1.02%
TECHNOLOGY · Cap: $1.42B
SCSC
ScanSource Inc
$36.76
+0.19%
TECHNOLOGY · Cap: $789.05M
Smart Verdict
WallStSmart Research — data-driven comparison
ScanSource Inc generates 5% more annual revenue ($3.02B vs $2.87B). CNXN leads profitability with a 2.9% profit margin vs 2.4%. SCSC appears more attractively valued with a PEG of 0.52. SCSC earns a higher WallStSmart Score of 58/100 (C).
CNXN
Hold47
out of 100
Grade: D+
SCSC
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-51.0%
Fair Value
$43.16
Current Price
$58.41
$15.25 premium
Margin of Safety
+41.1%
Fair Value
$58.84
Current Price
$36.76
$22.08 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
4.0% earnings growth
Smaller company, higher risk/reward
2.9% margin — thin
Operating margin of 3.8%
2.5% revenue growth
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 2.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : CNXN
The strongest argument for CNXN centers on Debt/Equity, Altman Z-Score, P/E Ratio. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bull Case : SCSC
The strongest argument for SCSC centers on P/E Ratio, Price/Book, Altman Z-Score. PEG of 0.52 suggests the stock is reasonably priced for its growth.
Bear Case : CNXN
The primary concerns for CNXN are EPS Growth, Market Cap, Profit Margin. Thin 2.9% margins leave little buffer for downturns.
Bear Case : SCSC
The primary concerns for SCSC are Revenue Growth, Market Cap, Profit Margin. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
SCSC carries more volatility with a beta of 1.28 — expect wider price swings.
SCSC is growing revenue faster at 2.5% — sustainability is the question.
SCSC generates stronger free cash flow (29M), providing more financial flexibility.
Monitor ELECTRONICS & COMPUTER DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SCSC scores higher overall (58/100 vs 47/100). Both earn "Buy" and "Hold" 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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