ScanSource (NASDAQ:SCSC) versus SiteOne Landscape Supply (NYSE:SITE) Head to Head Comparison

SiteOne Landscape Supply (NYSE:SITE) and ScanSource (NASDAQ:SCSC) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares SiteOne Landscape Supply and ScanSource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiteOne Landscape Supply	2.69%	7.80%	3.88%
ScanSource	2.35%	9.38%	4.87%

Risk and Volatility

SiteOne Landscape Supply has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, ScanSource has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for SiteOne Landscape Supply and ScanSource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiteOne Landscape Supply	1	7	5	0	2.31
ScanSource	0	2	1	1	2.75

SiteOne Landscape Supply currently has a consensus target price of $148.50, indicating a potential upside of 20.96%. ScanSource has a consensus target price of $42.50, indicating a potential downside of 1.05%. Given SiteOne Landscape Supply’s higher possible upside, analysts plainly believe SiteOne Landscape Supply is more favorable than ScanSource.

Institutional & Insider Ownership

97.9% of ScanSource shares are held by institutional investors. 2.6% of SiteOne Landscape Supply shares are held by company insiders. Comparatively, 4.2% of ScanSource shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares SiteOne Landscape Supply and ScanSource”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiteOne Landscape Supply	$4.62 billion	1.18	$123.60 million	$2.74	44.80
ScanSource	$3.04 billion	0.31	$71.55 million	$3.01	14.27

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

Summary

SiteOne Landscape Supply beats ScanSource on 8 of the 15 factors compared between the two stocks.

About SiteOne Landscape Supply

SiteOne Landscape Supply, Inc., together with its subsidiaries, engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides irrigation products, including controllers, valves, sprinkler heads, irrigation pipes, micro irrigation, and drip products; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species and cultivars; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specializes in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.

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.