WallStSmart

ScanSource Inc (SCSC)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ScanSource Inc generates 116% more annual revenue ($3.23B vs $1.49B). SONO leads profitability with a 3.8% profit margin vs 2.4%. SCSC trades at a lower P/E of 16.1x. SCSC earns a higher WallStSmart Score of 66/100 (B-).

SCSC

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 5.0Value: 7.3Quality: 6.8
Piotroski: 5/9

SONO

Hold

48

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SCSCUndervalued (+7.4%)

Margin of Safety

+7.4%

Fair Value

$37.44

Current Price

$58.19

$20.75 discount

UndervaluedFair: $37.44Overvalued
SONOSignificantly Overvalued (-31.9%)

Margin of Safety

-31.9%

Fair Value

$12.51

Current Price

$15.12

$2.61 premium

UndervaluedFair: $12.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SCSC6 strengths · Avg: 8.5/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.798/10

Growing faster than its price suggests

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
17.3%8/10

17.3% revenue growth

EPS GrowthGrowth
41.3%8/10

Earnings expanding 41.3% YoY

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

SCSC4 concerns · Avg: 2.8/10
Market CapQuality
$1.19B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Free Cash FlowQuality
$-4.79M2/10

Negative free cash flow — burning cash

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : SCSC

The strongest argument for SCSC centers on Price/Book, Debt/Equity, PEG Ratio. Revenue growth of 17.3% demonstrates continued momentum. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : SCSC

The primary concerns for SCSC are Market Cap, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

SCSC profiles as a growth stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

SCSC is growing revenue faster at 17.3% — sustainability is the question.

SONO generates stronger free cash flow (40M), providing more financial flexibility.

Bottom Line

SCSC scores higher overall (66/100 vs 48/100) and 17.3% revenue growth. Both earn "Strong 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.

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.

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Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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