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CNXN vs SCSC
Which Stock Would AI Choose? PC Connection (CNXN) vs. ScanSource (SCSC) Stock Comparison
Key Takeaways
- Both CNXN and SCSC operate in technology distribution and solutions, but with distinct models: CNXN is a value-added IT solutions provider, while SCSC is a hybrid distributor pairing hardware with high-margin recurring revenue.
- SCSC has delivered stronger recent momentum, with a roughly 52% year-to-date return and record quarterly earnings, versus a more moderate but steady advance for CNXN.
- CNXN is benefiting from an AI- and modernization-driven record backlog, while SCSC is expanding into cloud, cybersecurity, and AI through its pending MicroAge acquisition.
- SCSC trades at a lower earnings multiple, while CNXN commands a slightly richer valuation tied to its solution-led growth narrative.
- Their risk profiles differ: CNXN faces public-sector concentration and thin margins, while SCSC carries integration and large-deal timing risks.
Introduction
Investors evaluating technology distributors and solutions providers often weigh scale, margin quality, and exposure to secular themes such as cloud, security, and artificial intelligence. CNXN, doing business as PC Connection, and SCSC, known as ScanSource, both sit at the intersection of hardware resale and higher-value technology services, yet they pursue different paths to growth. This stock comparison is most relevant for traders and investors assessing relative performance, market positioning, and the durability of AI-driven demand across the IT channel. By examining recent financial results, strategic moves, and sentiment shifts, readers can better understand the trade-offs between these two companies.
CNXN Overview and Recent Performance
PC Connection, headquartered in Merrimack, New Hampshire, is a Fortune 1000 provider of custom-configured IT solutions serving business, enterprise, and public-sector customers. The company reported record second-quarter 2026 results, with sales rising to approximately $854 million and net income reaching about $33 million, alongside a quarterly dividend of $0.20 per share. Management has attributed recent strength to enterprise AI projects, data-center modernization, and Windows 11-driven device refreshes.
Recent market activity reflects growing investor attention on CNXN's record backlog, which management has described as its highest in several years and closely tied to AI infrastructure demand. The company also secured a NASA Solutions for Enterprise-Wide Procurement (SEWP) VI contract, broadening its federal IT purchasing access. Shares have trended higher over the past year, though sentiment remains tempered by structural concerns: net margins are relatively thin in a hardware-heavy model, and the public-sector segment has faced pressure from non-repeating large projects. The stock trades at a price-to-earnings (P/E) multiple near 21x, above its own recent historical range but below many technology peers.
SCSC Overview and Recent Performance
ScanSource, based in Greenville, South Carolina, operates as a hybrid technology distributor, connecting vendors with channel partners while building a growing recurring-revenue business through its Intelisys and advisory segment. In its fiscal fourth quarter of 2026, the company reported net sales of approximately $953 million, up 17.3% year over year, and full-year sales of roughly $3.23 billion. Non-GAAP earnings per share (EPS) rose 43% to a record $1.46.
ScanSource's recent performance has been driven by broad-based demand across physical security, mobility, networking, and cloud, as well as the return of larger deals. Recurring revenue, which grew 10.6% and now accounts for roughly 34% of consolidated gross profit, has been a key support for margins and cash flow. The company also announced a definitive agreement to acquire MicroAge, an IT solutions integrator, for $220.5 million, a move designed to add cloud, cybersecurity, data-center, and AI capabilities. SCSC shares have delivered one of the stronger performances among technology distributors, with a year-to-date return above 50%, though large-deal timing and regional softness in Brazil remain areas of uncertainty.
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Head-to-Head Comparison
The most fundamental contrast between these two companies is their business model. CNXN functions primarily as a direct value-added reseller and solutions provider, selling custom-configured hardware and services to end customers and emphasizing expertise across segments. SCSC operates further upstream as a distributor to channel partners, while layering a high-margin recurring-revenue business on top through Intelisys. This distinction shapes their growth drivers, margins, and risk profiles.
On momentum, SCSC has shown more pronounced acceleration, with double-digit quarterly sales growth and record EPS, while CNXN has delivered steadier, more measured growth supported by backlog rather than dramatic top-line expansion. SCSC's recurring revenue — roughly a third of gross profit — provides a stability buffer that CNXN's largely transactional hardware mix does not. Conversely, CNXN's direct customer relationships and AI-driven backlog position it closely to enterprise modernization trends, whereas SCSC's exposure to channel demand and large-deal timing can introduce quarter-to-quarter variability.
On valuation, SCSC trades at a lower P/E multiple (near 16x) than CNXN (near 21x), reflecting differing market expectations for growth quality. Risk factors also diverge: CNXN carries public-sector contract concentration and thin net margins, while SCSC faces integration risk from the MicroAge acquisition and regional weakness in Brazil. Both companies generate meaningful cash flow and maintain disciplined balance sheets, supporting their respective capital-return programs.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings momentum, and relative positioning, Tickeron's AI would likely lean toward SCSC in the current environment. The stock's stronger relative performance, accelerating top-line growth, record earnings, and growing recurring-revenue base suggest a more favorable trend profile than CNXN, whose advance has been more gradual and whose margins remain structurally constrained. That said, SCSC's dependence on large-deal timing and pending acquisition integration introduces near-term variability, while CNXN's record AI backlog offers a tangible catalyst that could support continued, if steadier, gains. The conclusion is probabilistic rather than definitive, reflecting the distinct trade-offs each company presents to traders.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CNXN is a Buy and SCSC is a Buy.
CNXN sees MACD Histogram just turned negative
CNXN saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 14, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In 25 of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 58%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CNXN moved out of overbought territory on October 14, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 20 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 51%.
The Momentum Indicator moved below the 0 level on October 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CNXN as a result. In 49 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 53%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CNXN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 10 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
CNXN moved above its 50-day moving average on October 30, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.09% 3-day Advance, the price is estimated to grow further. Considering data from situations where CNXN advanced for three days, in 215 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
CNXN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 117 of 215 cases where CNXN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 54%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 15 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 37, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 21 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. CNXN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.300) is normal, around the industry mean (2.256). P/E Ratio (22.910) is within average values for comparable stocks, (19.345). Projected Growth (PEG Ratio) (1.971) is also within normal values, averaging (1.350). Dividend Yield (0.009) settles around the average of (0.007) among similar stocks. CNXN's P/S Ratio (0.739) is slightly higher than the industry average of (0.418).
Momentum Indicator for SCSC turns negative, indicating new downward trend
SCSC saw its Momentum Indicator move below the 0 level on October 27, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned negative. In 61 of the 77 cases, the stock moved further down in the following days. The odds of a decline are at 79%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for SCSC moved out of overbought territory on October 02, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In 31 of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at 69%.
The Moving Average Convergence Divergence Histogram (MACD) for SCSC turned negative on October 15, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 30 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 68%.
SCSC moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCSC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 72%.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +2.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCSC advanced for three days, in 216 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
SCSC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 162 of 214 cases where SCSC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 76%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 32 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. SCSC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 42 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 47 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 37, placing this stock slightly worse than average.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.276) is normal, around the industry mean (2.256). P/E Ratio (15.640) is within average values for comparable stocks, (19.345). Projected Growth (PEG Ratio) (0.786) is also within normal values, averaging (1.350). Dividend Yield (0.000) settles around the average of (0.007) among similar stocks. P/S Ratio (0.381) is also within normal values, averaging (0.418).
The Tickeron SMR rating for this company is 75 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
CNXN | SCSC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 85 Overvalued | 65 Fair valued | |
PROFIT vs RISK RATING 1..100 | 15 | 47 | |
SMR RATING 1..100 | 68 | 75 | |
PRICE GROWTH RATING 1..100 | 42 | 42 | |
P/E GROWTH RATING 1..100 | 21 | 32 | |
SEASONALITY SCORE 1..100 | 50 | 42 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
SCSC's Valuation (65) in the Electronics Distributors industry is in the same range as CNXN (85) in the Information Technology Services industry. This means that SCSC’s stock grew similarly to CNXN’s over the last 12 months.
CNXN's Profit vs Risk Rating (15) in the Information Technology Services industry is in the same range as SCSC (47) in the Electronics Distributors industry. This means that CNXN’s stock grew similarly to SCSC’s over the last 12 months.
CNXN's SMR Rating (68) in the Information Technology Services industry is in the same range as SCSC (75) in the Electronics Distributors industry. This means that CNXN’s stock grew similarly to SCSC’s over the last 12 months.
CNXN's Price Growth Rating (42) in the Information Technology Services industry is in the same range as SCSC (42) in the Electronics Distributors industry. This means that CNXN’s stock grew similarly to SCSC’s over the last 12 months.
CNXN's P/E Growth Rating (21) in the Information Technology Services industry is in the same range as SCSC (32) in the Electronics Distributors industry. This means that CNXN’s stock grew similarly to SCSC’s over the last 12 months.
| CNXN | SCSC | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 51% | 2 days ago 69% |
| Stochastic ODDS (%) | 2 days ago 61% | 2 days ago 72% |
| Momentum ODDS (%) | 2 days ago 53% | 2 days ago 79% |
| MACD ODDS (%) | 2 days ago 58% | 2 days ago 68% |
| TrendWeek ODDS (%) | 2 days ago 52% | 2 days ago 70% |
| TrendMonth ODDS (%) | 2 days ago 49% | 2 days ago 70% |
| Advances ODDS (%) | 9 days ago 68% | 11 days ago 70% |
| Declines ODDS (%) | 3 days ago 57% | 2 days ago 72% |
| BollingerBands ODDS (%) | 2 days ago 75% | 2 days ago 83% |
| Aroon ODDS (%) | 2 days ago 54% | 2 days ago 76% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CNXN’s FA Score shows that 2 FA rating(s) are green while SCSC’s FA Score has 1 green FA rating(s).
- CNXN’s FA Score: 2 green, 3 red.
- SCSC’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CNXN’s TA Score shows that 5 TA indicator(s) are bullish while SCSC’s TA Score has 4 bullish TA indicator(s).
- CNXN’s TA Score: 5 bullish, 4 bearish.
- SCSC’s TA Score: 4 bullish, 5 bearish.
Price Growth
CNXN (@Electronics/Appliance Stores) experienced а -2.10% price change this week, while SCSC (@Electronics/Appliance Stores) price change was -5.47% for the same time period.
The average weekly price growth across all stocks in the @Electronics/Appliance Stores industry was -0.23%. For the same industry, the average monthly price growth was -5.21%, and the average quarterly price growth was +36.39%.
Reported Earning Dates
CNXN is expected to report earnings on Feb 10, 2027.
SCSC is expected to report earnings on Nov 05, 2026.
Industries' Descriptions
@Electronics/Appliance Stores (-0.23% weekly)The electronics/appliance stores industry includes companies that sell consumer electronics such as computers, stereo components, software, TVs, and appliances such as those for cooking and cleaning. Some companies also operate stores that rent and sell pre-recorded CDs and DVDs. Best Buy Co., Inc., Conn’s, Inc., Sears Hometown and Outlet Stores Inc. and Trans World Entertainment Corp. are some of the largest companies in this space.
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CNXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, CNXN has been loosely correlated with AVT. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if CNXN jumps, then AVT could also see price increases.
| Ticker / NAME | Correlation To CNXN | 1D Price Change % | ||
|---|---|---|---|---|
| CNXN | 100% | +1.41% | ||
| AVT - CNXN | 54% Loosely correlated | -4.58% | ||
| NSIT - CNXN | 53% Loosely correlated | -3.26% | ||
| SCSC - CNXN | 46% Loosely correlated | -2.15% | ||
| SNX - CNXN | 37% Loosely correlated | -7.23% | ||
| ARW - CNXN | 34% Loosely correlated | -5.69% | ||
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SCSC and
Correlation & Price change
A.I.dvisor indicates that over the last year, SCSC has been loosely correlated with AVT. These tickers have moved in lockstep 50% of the time. This A.I.-generated data suggests there is some statistical probability that if SCSC jumps, then AVT could also see price increases.
| Ticker / NAME | Correlation To SCSC | 1D Price Change % | ||
|---|---|---|---|---|
| SCSC | 100% | -2.15% | ||
| AVT - SCSC | 50% Loosely correlated | -4.58% | ||
| NSIT - SCSC | 45% Loosely correlated | -3.26% | ||
| CLMB - SCSC | 39% Loosely correlated | -2.87% | ||
| CNXN - SCSC | 36% Loosely correlated | +1.41% | ||
| SNX - SCSC | 36% Loosely correlated | -7.23% | ||
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| CCPX | 21.30 | N/A | N/A |
| Corgi China 2x Daily ETF (CCPX) | |||
| CEW | 19.48 | -0.07 | -0.37% |
| WisdomTree Emerging Currency Strategy Fund (CEW) | |||
| IQDF | 33.64 | -0.43 | -1.27% |
| Northern Trust International Quality Dividend ETF (IQDF) | |||
| TDV | 102.53 | -2.81 | -2.67% |
| ProShares S&P Technology Dividend Aristocrats ETF (TDV) | |||
| GDXW | 31.16 | -2.06 | -6.20% |
| Roundhill Gold Miners WeeklyPay ETF (GDXW) | |||