Head-To-Head Comparison: Rogers (NYSE:ROG) vs. ScanSource (NASDAQ:SCSC)

Rogers (NYSE:ROG) and ScanSource (NASDAQ:SCSC) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Risk and Volatility

Rogers has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, ScanSource has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rogers	3.75%	5.17%	4.31%
ScanSource	2.44%	10.10%	5.11%

Valuation & Earnings

This table compares Rogers and ScanSource”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers	$810.80 million	3.25	-$61.80 million	$1.75	84.14
ScanSource	$3.23 billion	0.38	$78.87 million	$3.66	16.65

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

Analyst Recommendations

This is a breakdown of recent ratings for Rogers and ScanSource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rogers	0	2	1	1	2.75
ScanSource	0	1	1	1	3.00

Rogers currently has a consensus price target of $225.00, indicating a potential upside of 52.80%. Given Rogers’ higher possible upside, research analysts clearly believe Rogers is more favorable than ScanSource.

Insider & Institutional Ownership

96.0% of Rogers shares are owned by institutional investors. Comparatively, 97.9% of ScanSource shares are owned by institutional investors. 1.1% of Rogers shares are owned by company insiders. Comparatively, 3.2% of ScanSource shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

ScanSource beats Rogers on 9 of the 13 factors compared between the two stocks.

About Rogers

Rogers Corporation engages in the design, development, manufacture, and sale of engineered materials and components worldwide. It operates through Advanced Electronics Solutions (AES), Elastomeric Material Solutions (EMS), and Other segments. The AES segment offers circuit materials, ceramic substrate materials, busbars, and cooling solutions for applications in electric and hybrid electric vehicles (EV/HEV), wireless infrastructure, automotive, renewable energy, aerospace and defense, mass transit, industrial, connected devices, and wired infrastructure. This segment sells its products under the curamik, ROLINX, RO4000, RO3000, RT/duroid, CLTE Series, TMM, AD Series, DiClad, CuClad Series, Kappa, COOLSPAN, TC Series, IsoClad, MAGTREX, IM, 2929 Bondply, SpeedWave Prepreg, RO4400/RO4400T, and Radix names. The EMS segment provides engineered material solutions, including polyurethane and silicone materials used in cushioning, gasketing, sealing, and vibration management applications; customized silicones used in flex heater and semiconductor thermal applications; and polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications. This segment sells its products under the PORON, BISCO, DeWAL, ARLON, eSorba, XRD, Silicone Engineering, and R/bak names. The Other segment provides elastomer components; and elastomer floats for level sensing in fuel tanks, motors, and storage tanks for applications in the general industrial and automotive markets under the ENDUR and NITROPHYL names. The company was founded in 1832 and is headquartered in Chandler, Arizona.

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.