SCSC vs. SITE: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Industrial Services sector should consider ScanSource (SCSC) and SiteOne Landscape (SITE) as potential value opportunities, with SCSC appearing to offer superior value based on various financial metrics [1][7]. Valuation Metrics - Both SCSC and SITE have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - SCSC has a forward P/E ratio of 11.17, significantly lower than SITE's forward P/E of 39.26, suggesting SCSC is more attractively priced [5]. - The PEG ratio for SCSC is 0.74, while SITE's PEG ratio is 2.34, indicating that SCSC is expected to grow earnings at a more favorable rate relative to its price [5]. - SCSC's P/B ratio is 1.11, compared to SITE's P/B of 3.73, further supporting the argument that SCSC is undervalued relative to its book value [6]. - Based on these valuation metrics, SCSC earns a Value grade of A, while SITE receives a Value grade of C, highlighting SCSC as the better value option [6].