Synnex vs ScanSource

Synnex and ScanSource are two leading distributors of technology products and services. Both companies are publicly traded on the stock market and are key players in the technology industry. Synnex's stock has shown consistent growth over the years, driven by strong financial performance and strategic acquisitions. On the other hand, ScanSource has faced challenges due to market fluctuations and changes in consumer demand. Investors may consider various factors such as financial performance, market position, and growth prospects when evaluating these two companies' stocks.

Synnex or ScanSource?

When comparing Synnex and ScanSource, 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 Synnex and ScanSource.

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. Synnex has a dividend yield of 2.4%, while ScanSource has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Synnex reports a 5-year dividend growth of 2.42% year and a payout ratio of 50.64%. On the other hand, ScanSource reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Synnex P/E ratio at 21.10 and ScanSource's P/E ratio at 15.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Synnex P/B ratio is 3.03 while ScanSource's P/B ratio is 1.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Synnex has seen a 5-year revenue growth of -0.04%, while ScanSource's is -0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Synnex's ROE at 14.65% and ScanSource's ROE at 8.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿14.80 for Synnex and $48.14 for ScanSource. Over the past year, Synnex's prices ranged from ฿8.90 to ฿16.00, with a yearly change of 79.78%. ScanSource's prices fluctuated between $27.86 and $53.29, with a yearly change of 91.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.