PC Connection, Inc. (CNXN) vs ScanSource, Inc. (SCSC)

PC Connection, Inc. and ScanSource, Inc. are both Electronics & Computer Distribution companies. PC Connection, Inc. is the larger, with a market value of $2.0B against $918.0M — 2.2× the size. ScanSource, Inc. trades at the lower P/E: 13.2× against 19.5×. ScanSource, Inc. grew revenue faster over the last twelve months: 14.8% against 9.53%. PC Connection, Inc. has the higher net margin (3.25% vs 1.96%) and the higher return on invested capital (12.5% vs 4.43%). Across the 21 metrics below, ScanSource, Inc. leads on 11 and PC Connection, Inc. on 10.

Valuation

Metric CNXN SCSC Electronics & Computer Distribution median
P/E 19.50 13.22 13.29
P/S 0.63 0.25 0.38
P/B 2.04 0.94 1.58
Price to free cash flow n/m 17.66 17.66
EV/EBITDA 11.91 10.46 10.46
EV/Sales 0.52 0.33 0.33
Earnings yield 5.13% 7.56% 6.77%
Free cash flow yield (1.08%) 5.66% 2.07%

Profitability

Metric CNXN SCSC Electronics & Computer Distribution median
Gross margin 18.64% 12.96% 14.23%
Operating margin 4.05% 2.47% 2.99%
Net margin 3.25% 1.96% 1.99%
Free cash flow margin (0.65%) 1.42% 0.71%
Return on equity 10.89% 7.40% 9.15%
Return on assets 7.27% 3.43% 3.52%
Return on invested capital 12.52% 4.43% 8.25%

Growth

Metric CNXN SCSC Electronics & Computer Distribution median
Revenue growth (TTM) 9.53% 14.77% 14.77%
EPS growth (last fiscal year) (0.61%) 21.33% 17.81%
Revenue growth, 5-year CAGR 2.09% 0.47% 1.79%
Net income growth, 5-year CAGR 8.47% 48.85% 4.24%

Health

Metric CNXN SCSC Electronics & Computer Distribution median
Debt to equity 0.00 0.36 0.37
Current ratio 2.72 1.75 1.39
Net debt to EBITDA (3.65) 0.11 1.23

Dividend

Metric CNXN SCSC Electronics & Computer Distribution median
Dividend yield 0.95% — 0.95%
Payout ratio 0.19 — 0.19

Size

Metric CNXN SCSC Electronics & Computer Distribution median
Market cap 2.01b 917.98m 1.46b

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