Financial Survey: Dynasil Corporation of America (OTCMKTS:DYSL) and ScanSource (NASDAQ:SCSC)

Dynasil Corporation of America (OTCMKTS:DYSL) and ScanSource (NASDAQ:SCSC) are both small-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Dynasil Corporation of America and ScanSource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynasil Corporation of America	0	0	0	0	0.00
ScanSource	0	3	0	0	2.00

ScanSource has a consensus price target of $43.00, indicating a potential downside of 21.75%. Given ScanSource’s stronger consensus rating and higher possible upside, analysts clearly believe ScanSource is more favorable than Dynasil Corporation of America.

Profitability

This table compares Dynasil Corporation of America and ScanSource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynasil Corporation of America	N/A	N/A	N/A
ScanSource	2.38%	9.35%	4.82%

Insider and Institutional Ownership

97.9% of ScanSource shares are held by institutional investors. 37.9% of Dynasil Corporation of America shares are held by company insiders. Comparatively, 3.2% of ScanSource shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Dynasil Corporation of America and ScanSource”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynasil Corporation of America	N/A	N/A	N/A	N/A	N/A
ScanSource	$3.04 billion	0.37	$71.55 million	$3.30	16.65

ScanSource has higher revenue and earnings than Dynasil Corporation of America.

Risk & Volatility

Dynasil Corporation of America has a beta of -0.4, meaning that its share price is 140% less volatile than the S&P 500. Comparatively, ScanSource has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Summary

ScanSource beats Dynasil Corporation of America on 8 of the 9 factors compared between the two stocks.

About Dynasil Corporation of America

Dynasil Corporation of America develops, markets, manufactures, and sells detection, sensing, and analysis technology and optical components in the United States, Asia, Europe, and internationally. It operates through Optics, Innovation and Development, and Biomedical segments. The Optics segment supplies synthetic crystals, optical materials, components, and coatings that are used in devices, such as baggage scanners, medical imaging systems, optical instruments, lasers, analytical instruments, automotive components, semiconductor/electronic devices, spacecraft/aircraft components, and advertising displays in the medical, industrial, and homeland security/defense sectors. The Innovation and Development segment develops advanced technology in materials, sensors, and prototype instruments that detect or measure radiation, light, magnetism, or sound for use in security, medical, and industrial applications. The Biomedical segment engages in the development of tissue sealant products. The company distributes its products through direct sales and marketing staff, as well as through manufacturer's representatives and distributors. Dynasil Corporation of America was founded in 1960 and is headquartered in Newton, Massachusetts.

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.