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SCSC vs STRD

SCSC
ScanSource, Inc.
NEUTRAL
Price
$39.55
Market Cap
$867.8M
Sector
Technology
AI Confidence
80%
STRD
Strategy Inc
BEARISH
Price
$77.14
Market Cap
$907.5M
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
SCSC
12.21
STRD
--
Forward P/E
SCSC
8.87
STRD
--
P/B Ratio
SCSC
0.94
STRD
0.55
P/S Ratio
SCSC
0.29
STRD
1.9
EV/EBITDA
SCSC
7.14
STRD
-7.09

Profitability

Gross Margin
SCSC
13.75%
STRD
68.69%
Operating Margin
SCSC
2.57%
STRD
-4401.61%
Profit Margin
SCSC
2.44%
STRD
0.0%
ROE
SCSC
8.16%
STRD
-11.11%
ROA
SCSC
3.5%
STRD
-7.78%

Growth

Revenue Growth
SCSC
2.5%
STRD
1.9%
Earnings Growth
SCSC
7.1%
STRD
--

Financial Health

Debt/Equity
SCSC
0.13
STRD
0.16
Current Ratio
SCSC
1.96
STRD
5.62
Quick Ratio
SCSC
1.04
STRD
5.52

Dividends

Dividend Yield
SCSC
--
STRD
12.99%
Payout Ratio
SCSC
0.0%
STRD
--

AI Verdict

SCSC NEUTRAL

SCSC presents a classic value-trap profile, characterized by a stable Piotroski F-Score of 4/9 and a significant discount to its Graham Number ($55.39) and Intrinsic Value ($57.19). While valuation metrics are exceptionally attractive (P/B < 1.0, PEG 0.58), the company suffers from razor-thin profit margins and stagnant revenue growth. The bullish valuation case is heavily offset by bearish insider activity from the CEO and CFO and a recent decline in quarterly EPS growth. Consequently, the stock is fundamentally undervalued but lacks a clear immediate catalyst for growth.

Strengths
Deep valuation discount (Price $39.55 vs Graham $55.39)
Very low leverage with a Debt/Equity ratio of 0.13
Strong liquidity position with a Current Ratio of 1.96
Risks
Razor-thin profit margins (2.44%) leave little room for operational error
Bearish insider sentiment with significant selling by CEO and CFO
Stagnant YoY revenue growth of only 2.50%
STRD BEARISH

STRD exhibits severe financial distress as evidenced by a Piotroski F-Score of 1/9, indicating critical weakness in fundamental health. While the company maintains a low debt-to-equity ratio and high liquidity, the catastrophic operating margin of -4401.61% and stagnant revenue growth of 1.90% suggest a failing operational model. The high dividend yield of 12.99% is highly suspect and likely unsustainable given the 0% profit margin. Overall, the stock presents as a classic value trap, trading below book value but lacking any viable path to profitability.

Strengths
Low Debt/Equity ratio (0.16)
Strong liquidity with a Current Ratio of 5.62
Healthy Gross Margin of 68.69%
Risks
Extreme operational inefficiency (Operating Margin -4401.61%)
Severe fundamental deterioration (Piotroski F-Score 1/9)
Stagnant revenue growth (1.90% YoY) in a high-growth sector

Compare Another Pair

SCSC vs STRD: Head-to-Head Comparison

This page compares ScanSource, Inc. (SCSC) and Strategy Inc (STRD) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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