WallStSmart

ScanSource Inc (SCSC)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ScanSource Inc generates 111% more annual revenue ($3.09B vs $1.46B). SCSC leads profitability with a 2.4% profit margin vs 1.6%. SCSC trades at a lower P/E of 14.8x. SCSC earns a higher WallStSmart Score of 58/100 (C).

SCSC

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 7.3Quality: 8.0
Piotroski: 4/9Altman Z: 3.77

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 3.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SCSCUndervalued (+2.4%)

Margin of Safety

+2.4%

Fair Value

$35.50

Current Price

$45.87

$10.37 discount

UndervaluedFair: $35.50Overvalued
SONOSignificantly Overvalued (-34.6%)

Margin of Safety

-34.6%

Fair Value

$12.26

Current Price

$15.08

$2.82 premium

UndervaluedFair: $12.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SCSC5 strengths · Avg: 9.2/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.7710/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.758/10

Growing faster than its price suggests

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

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

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Areas to Watch

SCSC3 concerns · Avg: 3.0/10
Market CapQuality
$993.26M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
3.1%3/10

Operating margin of 3.1%

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.88B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : SCSC

The strongest argument for SCSC centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.75 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 Market Cap, Return on Equity, Profit Margin. A P/E of 92.8x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

SCSC is growing revenue faster at 8.8% — sustainability is the question.

SCSC generates stronger free cash flow (69M), providing more financial flexibility.

Monitor ELECTRONICS & COMPUTER DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SCSC scores higher overall (58/100 vs 45/100). 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.

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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