Financial Analysis: ScanSource (NASDAQ:SCSC) & Fusion Fuel Green (NASDAQ:HTOO)

Fusion Fuel Green (NASDAQ:HTOO) and ScanSource (NASDAQ:SCSC) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Fusion Fuel Green and ScanSource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fusion Fuel Green	N/A	N/A	N/A
ScanSource	2.27%	8.96%	4.68%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Fusion Fuel Green and ScanSource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusion Fuel Green	0	0	0	0	0.00
ScanSource	0	0	1	0	3.00

ScanSource has a consensus target price of $42.00, indicating a potential downside of 1.41%. Given ScanSource’s stronger consensus rating and higher probable upside, analysts plainly believe ScanSource is more favorable than Fusion Fuel Green.

Volatility and Risk

Fusion Fuel Green has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, ScanSource has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Insider & Institutional Ownership

17.8% of Fusion Fuel Green shares are held by institutional investors. Comparatively, 97.9% of ScanSource shares are held by institutional investors. 18.7% of Fusion Fuel Green shares are held by company insiders. Comparatively, 4.2% 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 will outperform the market over the long term.

Valuation & Earnings

This table compares Fusion Fuel Green and ScanSource”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fusion Fuel Green	$1.74 million	2.00	-$14.92 million	N/A	N/A
ScanSource	$3.26 billion	0.30	$77.06 million	$2.77	15.38

ScanSource has higher revenue and earnings than Fusion Fuel Green.

Summary

ScanSource beats Fusion Fuel Green on 9 of the 12 factors compared between the two stocks.

About Fusion Fuel Green

Fusion Fuel Green PLC, together with its subsidiaries, manufactures and sells miniaturized PEM electrolyzers to produce green hydrogen in Portugal, Spain, and rest of southern Europe. The company offers HEVO-Chain, a centralized PEM electrolyzer; and HEVO-Solar, a grid-independent hydrogen generator. It also provides engineering and procurement services comprising advisory, concept and proposal developments; FEL I, II and III studies; construction and legalization services; and operation and maintenance services. In addition, the company is involved in hydrogen project development. It serves natural gas networks and grids, oil refineries, ammonia producers, regulators, and related government departments. Fusion Fuel Green PLC was founded in 2018 and is based in Dublin, Ireland.

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.