Comparing Hudson Technologies (NASDAQ:HDSN) & ScanSource (NASDAQ:SCSC)

ScanSource (NASDAQ:SCSC) and Hudson Technologies (NASDAQ:HDSN) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for ScanSource and Hudson Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ScanSource	0	1	1	0	2.50
Hudson Technologies	0	2	3	0	2.60

ScanSource presently has a consensus price target of $42.00, suggesting a potential upside of 1.06%. Hudson Technologies has a consensus price target of $8.6250, suggesting a potential downside of 11.36%. Given ScanSource’s higher possible upside, analysts clearly believe ScanSource is more favorable than Hudson Technologies.

Profitability

This table compares ScanSource and Hudson Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ScanSource	2.27%	8.96%	4.68%
Hudson Technologies	8.08%	7.26%	5.87%

Insider & Institutional Ownership

97.9% of ScanSource shares are owned by institutional investors. Comparatively, 71.3% of Hudson Technologies shares are owned by institutional investors. 4.2% of ScanSource shares are owned by insiders. Comparatively, 8.2% of Hudson Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

ScanSource has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Hudson Technologies has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares ScanSource and Hudson Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ScanSource	$3.26 billion	0.29	$77.06 million	$2.77	15.00
Hudson Technologies	$237.12 million	1.79	$24.39 million	$0.40	24.33

ScanSource has higher revenue and earnings than Hudson Technologies. ScanSource is trading at a lower price-to-earnings ratio than Hudson Technologies, indicating that it is currently the more affordable of the two stocks.

About ScanSource

ScanSource, Inc. engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies. This segment offers data capture and POS solutions to automate the collection, processing, and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications. It also provides electronic physical security products, such as identification, access control, video surveillance, and intrusion-related devices; networking products comprising wireless and networking infrastructure products; other software-as-a-service (SaaS) products; and engages in hardware rental activities. The Modern Communications & Cloud segment offers a portfolio of solutions primarily for communications technologies and services comprising voice, video conferencing, wireless, data networking, cybersecurity, cable, unified communications and collaboration, cloud, and technology services, as well as IP networks and other solutions for various vertical markets, such as education, healthcare, and government. The company serves manufacturing, warehouse and distribution, retail and e-commerce, hospitality, transportation and logistics, government, education and healthcare, and other industries. ScanSource, Inc. was incorporated in 1992 and is headquartered in Greenville, South Carolina.

About Hudson Technologies

Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, engages in the provision of solutions to recurring problems within the refrigeration industry in the United States. The company engages in the sale of refrigerant and industrial gas; provision of refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination and recovery to remove moisture, oils, and other contaminants. It also offers Chiller Chemistry, which integrates several fluid tests of an operating system and the corresponding laboratory results into an engineering report; Fluid Chemistry, an abbreviated version of Chiller Chemistry, which is designed to quickly identify systems that require further examination; SmartEnergy OPS, a web-based real time continuous monitoring system, for measuring, modifying and improving the efficiency of energy systems, including air conditioning and refrigeration systems, in industrial and commercial applications; and ChillSmart, which combines the system optimization with Chiller Chemistry for providing a snapshot of a packaged chiller's operating efficiency and health. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. The company was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.