Reviewing ScanSource (NASDAQ:SCSC) and Aeva Technologies (NASDAQ:AEVA)

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

Profitability

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

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

Insider & Institutional Ownership

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

Volatility & Risk

Aeva Technologies has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, ScanSource has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares Aeva Technologies and ScanSource”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aeva Technologies $18.08 million 49.86 -$145.43 million ($2.73) -5.24
ScanSource $3.23 billion 0.38 $78.87 million $3.66 16.67

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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Aeva Technologies and ScanSource, as reported by MarketBeat.

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

Aeva Technologies presently has a consensus price target of $28.75, indicating a potential upside of 101.05%. ScanSource has a consensus price target of $43.00, indicating a potential downside of 29.52%. Given Aeva Technologies’ higher probable upside, equities research analysts plainly believe Aeva Technologies is more favorable than ScanSource.

Summary

ScanSource beats Aeva Technologies on 10 of the 15 factors compared between the two stocks.

About Aeva Technologies

(Get Free Report)

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.

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.

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