Climb Global Solutions, Inc. (CLMB) vs ScanSource, Inc. (SCSC)

Climb Global Solutions, Inc. and ScanSource, Inc. are both Electronics & Computer Distribution companies. ScanSource, Inc. is the larger, with a market value of $918.0M against $743.5M — 1.2× the size. ScanSource, Inc. trades at the lower P/E: 13.2× against 30.7×. Climb Global Solutions, Inc. grew revenue faster over the last twelve months: 24.2% against 14.8%. Climb Global Solutions, Inc. has the higher net margin (3.04% vs 1.96%) and the higher return on invested capital (28.6% vs 4.43%). Across the 22 metrics below, Climb Global Solutions, Inc. leads on 11 and ScanSource, Inc. on 11.

Valuation

Metric CLMB SCSC Electronics & Computer Distribution median
P/E 30.75 13.22 13.29
P/S 0.95 0.25 0.38
P/B 5.43 0.94 1.58
Price to free cash flow 24.20 17.66 17.66
EV/EBITDA 16.77 10.46 10.46
EV/Sales 0.86 0.33 0.33
Earnings yield 3.25% 7.56% 6.77%
Free cash flow yield 4.13% 5.66% 2.07%

Profitability

Metric CLMB SCSC Electronics & Computer Distribution median
Gross margin 15.50% 12.96% 14.23%
Operating margin 3.99% 2.47% 2.99%
Net margin 3.04% 1.96% 1.99%
Free cash flow margin 3.91% 1.42% 0.71%
Return on equity 19.26% 7.40% 9.15%
Return on assets 5.24% 3.43% 3.52%
Return on invested capital 28.60% 4.43% 8.25%

Growth

Metric CLMB SCSC Electronics & Computer Distribution median
Revenue growth (TTM) 24.23% 14.77% 14.77%
EPS growth (last fiscal year) 14.29% 21.33% 17.81%
Revenue growth, 5-year CAGR 21.00% 0.47% 1.79%
Net income growth, 5-year CAGR 37.05% 48.85% 4.24%

Health

Metric CLMB SCSC Electronics & Computer Distribution median
Debt to equity 0.00 0.36 0.37
Current ratio 1.14 1.75 1.39
Net debt to EBITDA (0.97) 0.11 1.23

Dividend

Metric CLMB SCSC Electronics & Computer Distribution median
Dividend yield 0.11% — 0.95%
Payout ratio 0.03 — 0.19

Size

Metric CLMB SCSC Electronics & Computer Distribution median
Market cap 743.52m 917.98m 1.46b

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