Wetouch Technology (NASDAQ:WETH) versus ScanSource (NASDAQ:SCSC) Critical Comparison

ScanSource (NASDAQ:SCSCGet Free Report) and Wetouch Technology (NASDAQ:WETHGet Free Report) are both small-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

97.9% of ScanSource shares are owned by institutional investors. 3.2% of ScanSource shares are owned by insiders. Comparatively, 0.1% of Wetouch Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ScanSource and Wetouch Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ScanSource 0 3 0 1 2.50
Wetouch Technology 1 0 0 0 1.00

ScanSource currently has a consensus target price of $43.00, suggesting a potential downside of 24.94%. Given ScanSource’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ScanSource is more favorable than Wetouch Technology.

Risk & Volatility

ScanSource has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Wetouch Technology has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Valuation and Earnings

This table compares ScanSource and Wetouch Technology”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 0.36 $78.87 million $3.66 15.65
Wetouch Technology $45.14 million 0.30 $7.16 million $0.70 1.43

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

Profitability

This table compares ScanSource and Wetouch Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ScanSource 2.44% 10.10% 5.11%
Wetouch Technology 17.57% 5.94% 5.78%

Summary

ScanSource beats Wetouch Technology on 12 of the 14 factors compared between the two stocks.

About ScanSource

(Get Free Report)

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 Wetouch Technology

(Get Free Report)

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.

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