Head to Head Review: ScanSource (NASDAQ:SCSC) vs. Aeva Technologies (NASDAQ:AEVA)

ScanSource (NASDAQ:SCSC) and Aeva Technologies (NASDAQ:AEVA) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings for ScanSource and Aeva Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ScanSource	0	3	0	1	2.50
Aeva Technologies	1	2	2	0	2.20

ScanSource currently has a consensus target price of $43.00, indicating a potential downside of 25.67%. Aeva Technologies has a consensus target price of $28.75, indicating a potential upside of 105.80%. Given Aeva Technologies’ higher probable upside, analysts clearly believe Aeva Technologies is more favorable than ScanSource.

Earnings and Valuation

This table compares ScanSource and Aeva Technologies”s revenue, earnings per share (EPS) 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	15.81
Aeva Technologies	$18.08 million	48.71	-$145.43 million	($2.73)	-5.12

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

Risk and Volatility

ScanSource has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Aeva Technologies has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500.

Profitability

This table compares ScanSource and Aeva Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ScanSource	2.44%	10.10%	5.11%
Aeva Technologies	-150.12%	-859.37%	-81.68%

Insider and Institutional Ownership

97.9% of ScanSource shares are held by institutional investors. Comparatively, 62.9% of Aeva Technologies shares are held by institutional investors. 3.2% of ScanSource shares are held by company insiders. Comparatively, 36.7% of Aeva Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

ScanSource beats Aeva Technologies on 10 of the 15 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 Aeva Technologies

Aeva Technologies, Inc. engages in the design, development, manufacture, and sale of LiDAR sensing systems, and related perception and autonomy-enabling software solutions in North America, Europe, the Middle East, Africa, and Asia. The company develops its products using frequency modulated continuous wave (FMCW) sensing technology. It offers Aeries II, a 4D LiDAR solution that consist of 4D LiDAR sensing system with embedded software for automotive grade production across passenger car, trucking, and mobility applications; and Atlas, a FMCW 4D LiDAR with simultaneous velocity and range detection for the automotive market. The company's products are also used in industrial automation, consumer device, and security market applications. Aeva Technologies, Inc. was founded in 2017 and is headquartered in Mountain View, California.