ScanSource vs Synnex Which Is Superior?

ScanSource and Synnex are two leading companies in the technology distribution industry, both publicly traded on the stock market. Investors interested in this sector may consider comparing the performance and prospects of ScanSource and Synnex stocks. ScanSource is known for its focus on providing value-added services to customers, while Synnex is recognized for its broad product offerings and global reach. Understanding the differences in their business models and market positioning can help investors make informed decisions on which stock to add to their portfolios.

ScanSource or Synnex?

When comparing ScanSource and Synnex, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ScanSource and Synnex.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ScanSource has a dividend yield of -%, while Synnex has a dividend yield of 2.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ScanSource reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Synnex reports a 5-year dividend growth of 2.42% year and a payout ratio of 50.64%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ScanSource P/E ratio at 15.94 and Synnex's P/E ratio at 21.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ScanSource P/B ratio is 1.36 while Synnex's P/B ratio is 3.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ScanSource has seen a 5-year revenue growth of -0.00%, while Synnex's is -0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ScanSource's ROE at 8.40% and Synnex's ROE at 14.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $51.69 for ScanSource and ฿14.70 for Synnex. Over the past year, ScanSource's prices ranged from $29.82 to $53.76, with a yearly change of 80.28%. Synnex's prices fluctuated between ฿9.10 and ฿16.20, with a yearly change of 78.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.