ScanSource (NASDAQ:SCSC – Get Free Report) and Wetouch Technology (NASDAQ:WETH – Get 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 |
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
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
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.
Receive News & Ratings for ScanSource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ScanSource and related companies with MarketBeat.com's FREE daily email newsletter.
