ScanSource (NASDAQ:SCSC) and A2Z Cust2Mate Solutions (NASDAQ:AZ) Financial Contrast

ScanSource (NASDAQ:SCSC) and A2Z Cust2Mate Solutions (NASDAQ:AZ) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Insider & Institutional Ownership

97.9% of ScanSource shares are owned by institutional investors. Comparatively, 12.6% of A2Z Cust2Mate Solutions shares are owned by institutional investors. 3.2% of ScanSource shares are owned by company insiders. Comparatively, 27.9% of A2Z Cust2Mate Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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	15.35
A2Z Cust2Mate Solutions	$7.90 million	39.01	-$37.74 million	($0.83)	-8.34

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.

Risk and Volatility

ScanSource has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, A2Z Cust2Mate Solutions has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

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%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ScanSource and A2Z Cust2Mate Solutions, as provided 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

ScanSource currently has a consensus target price of $43.00, suggesting a potential downside of 23.45%. A2Z Cust2Mate Solutions has a consensus target price of $15.00, suggesting a potential upside of 116.76%. Given A2Z Cust2Mate Solutions’ higher possible upside, analysts clearly believe A2Z Cust2Mate Solutions is more favorable than ScanSource.

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.