Contrasting Presidio (PSDO) and ScanSource (SCSC)

Presidio (NASDAQ: PSDO) and ScanSource (NASDAQ:SCSC) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Presidio and ScanSource, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Presidio 0 1 4 0 2.80
ScanSource 0 0 1 0 3.00



Presidio presently has a consensus price target of $18.80, indicating a potential upside of 17.57%. ScanSource has a consensus price target of $43.00, indicating a potential upside of 18.62%. Given ScanSource’s stronger consensus rating and higher probable upside, analysts clearly believe ScanSource is more favorable than Presidio.

Insider and Institutional Ownership

97.0% of Presidio shares are owned by institutional investors. Comparatively, 96.4% of ScanSource shares are owned by institutional investors. 2.7% of Presidio shares are owned by company insiders. Comparatively, 2.4% of ScanSource shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Presidio and ScanSource’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Presidio $2.82 billion 0.52 $4.40 million $0.05 319.80
ScanSource $3.57 billion 0.26 $69.24 million $2.75 13.18

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

Profitability

This table compares Presidio and ScanSource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Presidio 4.11% 9.62% 2.34%
ScanSource 1.18% 9.06% 4.17%

Summary

Presidio beats ScanSource on 7 of the 13 factors compared between the two stocks.

About Presidio

Presidio, Inc. is a United States-based company, which is an information technology (IT) solutions provider. The Company’s services include strategy and consulting, solutions design and deployment, managed services, asset maintenance and support, financing services, global services and carrier connectivity. It offers various solutions under categories, including Digital Infrastructure, including Networking, Collaboration, Enterprise Mobility, Internet of Things and Data Analytics; Cloud, including Data Center Modernization, Hybrid/Multi Cloud and Cloud Concierge; and Security, including Next Generation Risk Management, Infrastructure Security, Managed Security and Physical Security. The Company focuses on technologies, including Collaboration, Virtualization, Data Center, Mobility, Hybrid Cloud Computing, IT Convergence and Cyber Security. It focuses on industries, such as healthcare, education, media and entertainment, energy and utilities, and legal and professional services.

About ScanSource

ScanSource, Inc. distributes technology products and solutions in North America, Latin America, and Europe. The company's Worldwide Barcode, Networking & Security segment focuses on automatic identification and data capture (AIDC), point-of-sale (POS), networking, electronic physical security, 3D printing, and other specialty technologies. Its AIDC and POS products are used to automate the collection, processing, and communication of information for commercial and industrial applications, such as retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications; electronic physical security products, including identification, access control, video surveillance, intrusion-related, wireless, and networking infrastructure products; and 3D printing solutions to replace and complement traditional methods, as well as reduce the time and cost of designing new products. Its Worldwide Communications & Services segment focuses on communications technologies and services. This segment provides voice and data products, such as private branch exchanges (PBX), key systems, and telephone handsets and components that are used in voice, fax, data, voice recognition, call center management, and IP communication applications; converged communication products, such as telephone and IP network interfaces, voice over Internet protocol systems, PBX integration products, and carrier-class board systems-level products; and video products comprising video and voice conferencing, and network systems. This segment also offers data networking products that include switches, servers, and routers; and provides value-added support programs and services, such as education and training, customer configuration, marketing services, network assessments, WiFi services, and partnership programs. ScanSource, Inc. was founded in 1992 and is headquartered in Greenville, South Carolina.

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