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 $1.2B against $614.7M — 2.0× the size. ScanSource, Inc. trades at the lower P/E: 16.2× against 28.6×. Climb Global Solutions, Inc. grew revenue faster over the last twelve months: 23.1% against 6.09%. Climb Global Solutions, Inc. has the higher net margin (2.85% vs 2.44%) and the higher return on invested capital (25.3% vs 6.67%). 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 28.57 16.22 16.80
P/S 0.82 0.40 0.48
P/B 4.66 1.41 1.83
Price to free cash flow 14.22 11.27 13.78
EV/EBITDA 14.48 10.55 10.55
EV/Sales 0.74 0.40 0.40
Earnings yield 3.50% 6.16% 5.24%
Free cash flow yield 7.03% 8.87% 3.11%

Profitability

Metric CLMB SCSC Electronics & Computer Distribution median
Gross margin 15.77% 13.56% 14.67%
Operating margin 3.90% 3.06% 2.89%
Net margin 2.85% 2.44% 2.35%
Free cash flow margin 5.76% 3.53% 1.72%
Return on equity 17.62% 8.68% 9.56%
Return on assets 4.59% 4.24% 3.10%
Return on invested capital 25.32% 6.67% 7.54%

Growth

Metric CLMB SCSC Electronics & Computer Distribution median
Revenue growth (TTM) 23.05% 6.09% 6.09%
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 0.11 0.24
Current ratio 1.13 1.76 1.40
Net debt to EBITDA (0.97) 0.11 1.23

Dividend

Metric CLMB SCSC Electronics & Computer Distribution median
Dividend yield 0.13% — 0.96%
Payout ratio 0.04 — 0.20

Size

Metric CLMB SCSC Electronics & Computer Distribution median
Market cap 614.68m 1.22b 1.76b

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