SCSC vs CNXN

For growth investors, PC Connection, Inc.

(CNXN) is the stronger pick with 2. 5% revenue growth year-over-year, versus -6. 7% for ScanSource, Inc. (SCSC). ScanSource, Inc. (SCSC) offers the better valuation at 14. 5x trailing P/E (11. 0x forward), making it the more compelling value choice. Analysts rate PC Connection, Inc. (CNXN) a "Buy" — based on 1 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, ScanSource, Inc.

(SCSC) is the cheapest at 14. 5x versus PC Connection, Inc. at 20. 0x. On forward P/E, ScanSource, Inc. is actually cheaper at 11. 0x.

Over the past 5 years, PC Connection, Inc.

(CNXN) delivered a total return of +45. 1%, compared to +34. 3% for ScanSource, Inc. (SCSC). Over 10 years, the gap is even starker: CNXN returned +199. 0% versus SCSC's +9. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), PC Connection, Inc.

(CNXN) is the lower-risk stock at 0. 83β versus ScanSource, Inc. 's 1. 48β — meaning SCSC is approximately 78% more volatile than CNXN relative to the S&P 500. On balance sheet safety, PC Connection, Inc. (CNXN) carries a lower debt/equity ratio of 0% versus 16% for ScanSource, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), PC Connection, Inc.

(CNXN) is pulling ahead at 2. 5% versus -6. 7% for ScanSource, Inc. (SCSC). On earnings-per-share growth, the picture is similar: PC Connection, Inc. grew EPS -0. 6% year-over-year, compared to -2. 0% for ScanSource, Inc.. Over a 3-year CAGR, CNXN leads at -2. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

PC Connection, Inc.

(CNXN) is the more profitable company, earning 2. 9% net margin versus 2. 4% for ScanSource, Inc. — meaning it keeps 2. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CNXN leads at 3. 6% versus 2. 8% for SCSC. At the gross margin level — before operating expenses — CNXN leads at 18. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, ScanSource, Inc.

(SCSC) trades at 11. 0x forward P/E versus 16. 6x for PC Connection, Inc. — 5. 7x cheaper on a one-year earnings basis.

In this comparison, CNXN (0.

9% yield) pays a dividend. SCSC does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, PC Connection, Inc.

(CNXN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 83), 0. 9% yield, +199. 0% 10Y return). Both have compounded well over 10 years (CNXN: +199. 0%, SCSC: +9. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: SCSC is a small-cap deep-value stock; CNXN is a small-cap quality compounder stock. CNXN pays a dividend while SCSC does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.