ScanSource (NASDAQ: SCSC) and Logitech International (NASDAQ:LOGI) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
This is a breakdown of recent ratings and recommmendations for ScanSource and Logitech International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ScanSource presently has a consensus target price of $48.50, indicating a potential upside of 8.50%. Logitech International has a consensus target price of $38.80, indicating a potential upside of 6.27%. Given ScanSource’s higher possible upside, research analysts clearly believe ScanSource is more favorable than Logitech International.
This table compares ScanSource and Logitech International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Logitech International pays an annual dividend of $2.47 per share and has a dividend yield of 6.8%. ScanSource does not pay a dividend. Logitech International pays out 199.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
ScanSource has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Logitech International has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Earnings & Valuation
This table compares ScanSource and Logitech International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ScanSource||$3.57 billion||0.32||$118.92 million||$2.72||16.43|
|Logitech International||$2.27 billion||2.61||$251.67 million||$1.24||29.44|
Logitech International has higher revenue, but lower earnings than ScanSource. ScanSource is trading at a lower price-to-earnings ratio than Logitech International, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.0% of ScanSource shares are held by institutional investors. Comparatively, 37.8% of Logitech International shares are held by institutional investors. 3.0% of ScanSource shares are held by company insiders. Comparatively, 2.2% of Logitech International shares are held by company 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.
Logitech International beats ScanSource on 9 of the 16 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 Logitech International
Logitech International S.A. is a holding company. The Company designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company operates through peripheral segment. The Company offers its products to a network of domestic and international customers, including direct sales to retailers, e-tailers, and indirect sales through distributors. The Company’s retail network across the world includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants. Its music solutions are focused primarily on mobile speakers, including its UE BOOM family of mobile wireless speakers, its Jaybird wireless audio wearables for sports and active lifestyles, and its custom in-ear headphones. It offers a range of gaming gear for gamers, including mice, keyboards, headsets, gamepads and steering wheels.
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