ScanSource (NASDAQ:SCSC – Get Free Report) and A2Z Cust2Mate Solutions (NASDAQ:AZ – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Volatility and Risk
ScanSource has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, A2Z Cust2Mate Solutions has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for ScanSource and A2Z Cust2Mate Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ScanSource | 0 | 3 | 0 | 1 | 2.50 |
| A2Z Cust2Mate Solutions | 1 | 1 | 2 | 0 | 2.25 |
Earnings and Valuation
This table compares ScanSource and A2Z Cust2Mate Solutions”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ScanSource | $3.23 billion | 0.35 | $78.87 million | $3.66 | 15.45 |
| A2Z Cust2Mate Solutions | $14.41 million | 19.62 | -$37.74 million | ($0.83) | -7.65 |
ScanSource has higher revenue and earnings than A2Z Cust2Mate Solutions. A2Z Cust2Mate Solutions is trading at a lower price-to-earnings ratio than ScanSource, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ScanSource and A2Z Cust2Mate Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ScanSource | 2.44% | 10.10% | 5.11% |
| A2Z Cust2Mate Solutions | -241.67% | -49.91% | -43.81% |
Institutional & Insider Ownership
97.9% of ScanSource shares are held by institutional investors. Comparatively, 12.6% of A2Z Cust2Mate Solutions shares are held by institutional investors. 3.2% of ScanSource shares are held by insiders. Comparatively, 28.0% of A2Z Cust2Mate Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
ScanSource beats A2Z Cust2Mate Solutions on 11 of the 15 factors compared between 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 A2Z Cust2Mate Solutions
A2Z Smart Technologies Corp., a technology company, focuses on the development and commercialization of retail smart cart solutions for grocery stores and supermarkets in Israel and internationally. The company operates through three segments: Precision Metal Parts, Advanced Engineering, and Smart Carts. It offers Cust2Mate system, which incorporates a smart cart that automatically calculates the value of the customers purchases in their smart cart without having to unload and reload their purchases at a customer checkout point. The company also manufactures and sells precision metal parts; provides retail automation solutions; and develops Fuel Tank Inertia Capsule System technology (FTICS), a vehicle device cover for the military and civilian automotive industry. In addition, it provides maintenance services utilizing the application of advanced engineering capabilities to the military and security markets, as well as develops related products for the civilian and retail markets; container leasing services; and maintenance services for complex electronic systems and products. It serves its products to grocery stores, hardware stores, household essentials, do it yourself (DIY) retailers, discount stores, warehouse stores, convenience stores, drug stores, duty free shops, and similar outlets. The company is headquartered in Vancouver, Canada.
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