ScanSource Inc (SCSC)vsSonos Inc (SONO)
SCSC
ScanSource Inc
$58.98
-0.77%
TECHNOLOGY · Cap: $1.23B
SONO
Sonos Inc
$17.46
-1.63%
TECHNOLOGY · Cap: $2.05B
Smart Verdict
WallStSmart Research — data-driven comparison
ScanSource Inc generates 116% more annual revenue ($3.23B vs $1.49B). SONO leads profitability with a 3.8% profit margin vs 2.4%. SCSC trades at a lower P/E of 16.8x. SCSC earns a higher WallStSmart Score of 66/100 (B-).
SCSC
Strong Buy66
out of 100
Grade: B-
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.0%
Fair Value
$38.10
Current Price
$58.98
$20.88 discount
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$17.46
$4.98 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
17.3% revenue growth
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 3.5%
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : SCSC
The strongest argument for SCSC centers on Price/Book, Altman Z-Score, Debt/Equity. Revenue growth of 17.3% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : SCSC
The primary concerns for SCSC are Market Cap, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
SCSC profiles as a growth stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.88 — expect wider price swings.
SCSC is growing revenue faster at 17.3% — sustainability is the question.
SONO generates stronger free cash flow (40M), providing more financial flexibility.
Bottom Line
SCSC scores higher overall (66/100 vs 47/100) and 17.3% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
ScanSource Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. The company is headquartered in Greenville, South Carolina.
Visit Website →Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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