What is a color masterbatch and why do plastic manufacturers use them instead of buying pre-colored resin?

Plastic coloring fundamentals: natural (uncolored) plastic resin (polyethylene, polypropylene, ABS, nylon) is typically off-white, translucent, or colorless; to make colored plastic products, colorants must be added to the resin before molding; there are two primary approaches: pre-colored compounds (resin colored throughout by the resin supplier or compounder) and masterbatch (concentrated colorant packages that manufacturers add at the molding machine). Masterbatch definition: a masterbatch is a concentrated mixture of colorants (pigments or dyes) and/or functional additives (antioxidants, UV stabilizers, flame retardants, antimicrobials) dispersed in a carrier resin; the carrier resin is compatible with the end product's plastic type (polyethylene masterbatch for polyethylene products, polypropylene masterbatch for polypropylene products); at the injection molding machine, the masterbatch is mixed with natural resin in a 'let-down ratio' (typically 1-4% masterbatch in 96-99% natural resin) to achieve the desired color and functional properties. Why manufacturers prefer masterbatch: flexibility — a manufacturer can use the same natural resin inventory for any color by changing the masterbatch; stocking 10 colors of pre-colored resin for 10 product SKUs requires much more inventory space than stocking natural resin plus 10 masterbatches; economics — purchasing natural resin in bulk (largest volume, best pricing) plus small quantities of masterbatch is often more economical than buying pre-colored resin at a lower-volume, higher-cost tier; color consistency — Avient's colorists formulate masterbatches to exact color specifications (Pantone or custom matches) that ensure color consistency across production runs; quality control. Switching costs: once Avient's colorists have developed a custom formulation to exactly match a customer's target color specification, the customer is dependent on that specific formulation; reformulating with a different masterbatch supplier requires re-qualifying the color (running production trials, getting approval from brand management or customers) — a time-consuming, costly process; customers rarely change masterbatch suppliers for established product colors.

What was the PolyOne to Avient transformation and how did the Clariant acquisition change the business?

PolyOne history: PolyOne Corporation was a large U.S. polymer distribution and compound company — it distributed commodity resins (polyethylene, polypropylene, PVC) to small and mid-size manufacturers who couldn't buy directly from resin producers, and it produced specialty polymer compounds; the distribution business generated large revenue at thin margins; the specialty compound business generated smaller revenue at better margins; investors viewed PolyOne as a 'boring' distribution company with limited growth prospects. Strategic transformation: CEO Robert Patterson (started 2014) articulated a strategic transformation — shift PolyOne from a distribution-heavy company to a specialty formulation-driven company; acquire specialty materials businesses that provide custom-formulated, value-added polymer solutions with high switching costs; divest or de-emphasize commodity distribution. Clariant masterbatch acquisition: in 2020, PolyOne acquired Clariant's Color and Additive Masterbatch business for approximately $1.45 billion; Clariant's masterbatch business was one of the world's largest — a global operation serving consumer products, healthcare, packaging, and automotive customers across Europe, Asia, and the Americas; the acquisition: doubled PolyOne's revenue; transformed it from a primarily U.S. business to a global specialty materials company; added thousands of proprietary color formulations and customer relationships; elevated the specialty percentage of revenue significantly; following the Clariant acquisition, the company renamed itself Avient Corporation (a name combining 'avie' — a French/Italian stem suggesting 'to have' or 'life' — with 'ent' for enterprise, symbolizing the new specialty materials identity). Margin evolution: pre-transformation PolyOne EBITDA margins were approximately 6-8%; post-Clariant Avient targets EBITDA margins of 15-18% in specialty segments; the transformation successfully elevated the business's margin profile and quality of earnings.

How does ScanSource differentiate from broadline IT distributors like Ingram Micro and TD Synnex?

Broadline IT distributors: Ingram Micro, TD Synnex, and Arrow Electronics are the largest IT product distributors — they distribute thousands of products from hundreds of vendors (computers, servers, networking, storage, software, peripherals, and more) to resellers, retailers, and IT professionals; their scale is enormous (Ingram Micro generates $50B+ in revenue); their value proposition is breadth (one vendor for all major IT product categories) and scale (buying power with every major technology vendor); their margins are thin (2-4% gross margin) because they compete on price for commodity products. ScanSource's specialty differentiation: ScanSource focuses exclusively on barcode/data capture, POS/payment, communications, and security technology — not computers, networking, storage, or servers; this focus enables: technical expertise that generalist distributors can't match (ScanSource's sales team understands barcode scanner specifications, reads environments, and can help a VAR select the right scanner for a specific application — Ingram Micro's general IT sales rep doesn't have this specialized knowledge); vendor relationships in specialized categories (ScanSource is Zebra Technologies' top distribution partner in North America — a relationship built on decades of barcode technology specialization that a broadline distributor serving Zebra as one of hundreds of vendors can't replicate); VAR services (pre-configuration, technical support, custom kitting) that broadline distributors don't provide for specialty equipment. Why this matters: a VAR specializing in warehouse automation who needs 500 Zebra MC3300 mobile computers configured with specific software and deployed to a warehouse client doesn't want to buy from Ingram Micro — Ingram doesn't understand the application, doesn't stock Zebra accessories, and doesn't provide the technical support the VAR needs to serve their end customer; ScanSource's specialization is its sustainable competitive differentiation in a market where broadline distributors have scale advantages for commodity products.

Data as of: September 20, 2026

brimindinvest.com / compare / scsc-vs-araLIVE

SCSC

ScanSource, Inc. · Technology Distribution - Specialty Technology Products (Barcode, POS, Security, Communications)

$56.88

+10.62% this month

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AVNT

Avient Corporation (formerly PolyOne Corporation) · Materials - Specialty Polymer Materials (Color Masterbatches, Composites, Functional Additives)

$40.36

-8.21% this month

Comparison scoreboard

AVNT LEADS 3/5

AI Scorei

SCSC 33.8

AVNT ✓34.4

1Y Returni

SCSC ✓+28.31%

AVNT +14.58%

Fwd P/Ei

SCSC ✓10.85

AVNT 11.85

Target Up.i

SCSC +6.81%

AVNT ✓+22.81%

Op. Margini

SCSC 3.55%

AVNT ✓12.77%

Metrics last refreshed: 9/20/2026

Quick take

SCSC vs AVNT Stock Comparison: AI Score, Valuation, Performance and Upside

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SCSC (ScanSource) and AVNT (Avient Corporation) are both specialty distribution and materials companies serving business customers with value-added expertise in their respective domains — ScanSource distributes specialty technology products (barcode scanners, POS systems, security cameras) to value-added resellers with technical support differentiation, while Avient Corporation provides specialty polymer color and additive formulations and engineered composites to manufacturers in healthcare, packaging, transportation, and industrial markets.

SCSC vs AVNT is specialty technology distributor with value-added services for VARs in barcode, POS, and physical security markets (ScanSource's VAR relationship stickiness, technical support differentiation, and Brazil growth exposure — hardware price deflation, direct vendor competition in large accounts, and economic spending cyclicality) versus specialty polymer materials company with custom formulation switching costs (Avient's color masterbatch and functional additive formulations, healthcare and packaging end market resilience, and Clariant acquisition global expansion — commodity distribution margin drag, transportation cyclicality, and raw material cost volatility).

Live analysis · updated 9/20/2026

AVNT holds the edge across 3 of 5 key metrics in this comparison. SCSC leads on both 1-year return (+28.31%) and forward P/E quality (10.85x vs 11.85x for AVNT), a relatively favorable combination of momentum and valuation. On fundamentals, SCSC is growing revenue faster (17.30%), while AVNT maintains the higher operating margin (12.77%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for AVNT (+22.81%) than for SCSC (+6.81%).

Normalized 1Y performance

SCSC

AVNT

Recent returns

SCSC

AVNT

Analyst price targets & sentiment

Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.

SCSC

Price target range

analyst mean$60.50
current price$56.88

+6.8% upside to analyst mean

AVNT

Price target range

analyst mean$50.86
current price$40.36

+22.8% upside to analyst mean

Who should consider this stock?

SCSC may suit investors who:

Want specialty technology distribution exposure through ScanSource's value-added VAR-serving model in barcode, POS, communications, and physical security — differentiated from broadline IT distributors by technical expertise and VAR relationship depth
Value ScanSource's Brazil presence as providing exposure to a large underserved Latin American technology distribution market alongside its North American core business
Accept technology hardware distribution margin constraints in exchange for the recurring VAR order patterns and specialized market focus that distinguishes ScanSource from commodity distribution

AVNT may suit investors who:

Want specialty polymer materials exposure through Avient's custom color masterbatch and functional additive formulations for healthcare, packaging, and industrial applications — with switching costs from proprietary formulation that generic commodity polymer distributors cannot match
Value Avient's transformation from distribution-heavy PolyOne to a specialty formulation company with the Clariant Color acquisition adding global masterbatch leadership and higher-margin specialty revenues
Believe healthcare and consumer packaging end market growth provides relatively non-cyclical demand for Avient's specialty polymer solutions while transportation and industrial end markets add cyclical upside

Performance & AI score

Performance & AI score
Metric	SCSC	AVNT
AI scorei	33.8	34.4
AI ranki	#1960	#1842
Latest closei	$56.88	$40.36
1M returni	+10.62%	-8.21%
6M returni	+64.25%	+28.28%
1Y returni	+28.31%	+14.58%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

$10,000 invested — hypothetical growth (dividends reinvested)
Period	SCSC	AVNT
1Y ago	$12.83K (+28.3%) started 2025-09-18	$11.82K (+18.2%) started 2025-09-18
5Y ago	$16.77K (+67.7%) started 2021-09-20	$11.73K (+17.3%) started 2021-09-20
10Y ago	$15.95K (+59.5%) started 2016-09-19	$21.32K (+113.2%) started 2016-09-19

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Valuation & upside potential
Metric	SCSC	AVNT
Market capi	$1.15B	$3.8B
Trailing P/Ei	15.56	22.38
Forward P/Ei	10.85	11.85
Price/Salesi	N/A	N/A
EV/Revenuei	0.36	1.58
Analyst targeti	$60.50	$50.86
Target upsidei	+6.81%	+22.81%

Growth, profitability & risk

Growth, profitability & risk
Metric	SCSC	AVNT
Revenue growthi	17.30%	5.80%
Earnings growthi	41.30%	22.80%
EPS growthi	+41.30%	+22.80%
FCF margini	+2.95%	+7.92%
Operating margini	3.55%	12.77%
Profit margini	2.44%	5.10%
ROIC proxyi	8.68%	7.11%
Return on equityi	8.68%	7.11%
Dividend yieldi	N/A	2.66%
Payout ratioi	0.00%	59.12%
Dividend growth streaki	N/A	11 yrs
Betai	1.24	1.30
Debt/equityi	12.18	76.56
Current ratioi	1.75	1.90
Quick ratioi	1.11	1.21

Correlation

Over the past year, SCSC and AVNT have moved weakly in the same direction (correlation of 0.26), based on daily returns.

1Y

0.26

-1.0+1.0

5Y

0.45

-1.0+1.0

10Y

0.51

-1.0+1.0

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

SCSC max drawdowni23.06%

AVNT max drawdowni25.68%

SCSC max wkly dropi21.79%

AVNT max wkly dropi11.55%

5Y risk snapshot

SCSC max drawdowni44.21%

AVNT max drawdowni52.94%

SCSC max wkly dropi21.79%

AVNT max wkly dropi21.56%

10Y risk snapshot

SCSC max drawdowni67.54%

AVNT max drawdowni76.89%

SCSC max wkly dropi37.43%

AVNT max wkly dropi49.21%

Performance metrics by period

Performance metrics by period
Period	Metric	SCSC	AVNT
1Y	Growthi	+28.31%	+14.58%
	CAGRi	+28.33%	+14.59%
	Volatilityi	37.12%	36.09%
	Sharpe ratioi	0.74	0.43
	Sortino ratioi	1.00	0.69
	Max drawdowni	23.06%	25.68%
	Current drawdowni	3.41%	12.33%
	Avg drawdowni	7.58%	11.76%
	Ulcer Indexi	9.77%	13.31%
	Max daily dropi	17.98%	6.28%
	Max wkly dropi	21.79%	11.55%
5Y	Growthi	+67.69%	+2.08%
	CAGRi	+10.91%	+0.41%
	Volatilityi	36.41%	37.71%
	Sharpe ratioi	0.35	0.08
	Sortino ratioi	0.49	0.12
	Max drawdowni	44.21%	52.94%
	Current drawdowni	3.41%	24.53%
	Avg drawdowni	17.55%	28.87%
	Ulcer Indexi	20.36%	31.03%
	Max daily dropi	17.98%	18.86%
	Max wkly dropi	21.79%	21.56%
10Y	Growthi	+59.51%	+62.53%
	CAGRi	+4.78%	+4.98%
	Volatilityi	39.74%	40.20%
	Sharpe ratioi	0.21	0.21
	Sortino ratioi	0.29	0.31
	Max drawdowni	67.54%	76.89%
	Current drawdowni	3.41%	24.53%
	Avg drawdowni	22.89%	23.25%
	Ulcer Indexi	26.54%	27.57%
	Max daily dropi	22.69%	32.24%
	Max wkly dropi	37.43%	49.21%

AI Prediction Signali

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Next 5 trading days

SCSC

+2.8%BUY

AVNT

+1.1%HOLD

Next 30 trading days

SCSC

+6.4%BUY

AVNT

+3.2%HOLD

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Business comparison

Business comparison
Category	SCSC	AVNT
Company	ScanSource, Inc.	Avient Corporation (formerly PolyOne Corporation)
Sector	Technology	Basic Materials
Industry	Electronics & Computer Distribution	Specialty Chemicals
Core business	ScanSource is a specialty technology products distributor serving value-added resellers (VARs) and system integrators rather than end users directly. ScanSource's product portfolio includes: barcode and data capture (handheld scanners, fixed barcode readers, mobile computers, RFID readers — Zebra Technologies, Honeywell, Datalogic brands); point-of-sale (receipt printers, payment terminals, customer displays — Epson, Ingenico, Verifone); communications (Avaya, Cisco, Mitel business phone systems and collaboration equipment); physical security (IP cameras, access control, video surveillance); and cloud/SaaS distribution (cloud services resold through ScanSource's partner community). ScanSource operates in North America and Brazil. ScanSource adds value to VARs through pre-configured equipment, technical support, financing, and logistics management.	Avient Corporation (renamed from PolyOne in 2020 following the acquisition of Clariant's color masterbatch business) is a specialty materials company providing polymer formulation and distribution solutions to manufacturers. Avient's segments include: Color, Additives and Inks (CAI — providing color masterbatches and functional additive compounds for plastics; Avient's Clariant acquisition made it a global leader in plastic colorants and functional additives for consumer products, packaging, healthcare, and industrial applications); Specialty Engineered Materials (SEM — providing advanced polymer composites, conductive polymers, and specialty fiber-reinforced materials for demanding applications in transportation, electronics, and industrial markets); and Distribution (distributing commodity and specialty polymers for small and mid-size manufacturers across North America). Avient's transformation from a distribution-heavy company to a specialty materials formula company has been the primary strategic story of the past decade.
Investor focus	Investors track ScanSource's organic revenue growth by product category, gross margin, and ability to grow higher-margin services and cloud distribution alongside hardware products whose prices decline over time.	Investors track Avient's specialty segment organic growth, EBITDA margins (which are higher in specialty formulations than distribution), end market trends in healthcare, packaging, and transportation, and the Clariant integration economics.

SCSC strengths

Specialty technology distributor with value-added services differentiates from broadline IT distributors (Ingram Micro, TD Synnex) — ScanSource's expertise in barcode, POS, and physical security technology enables more technical support to VARs than broadline distributors provide
VAR customer relationships create recurring order patterns — VARs that source barcode scanners through ScanSource return for each project's equipment needs; long-term VAR relationships are sticky
Geographic presence in Brazil provides exposure to a large, growing Latin American technology market where ScanSource has established distributor relationships

AVNT strengths

Color and additive masterbatch business is specialty formulation-driven — Avient's colorists and chemists formulate custom color and functional additive masterbatches specific to each customer's application; the formulation is proprietary, creating switching costs as customers would need to reformulate and re-qualify colors with a different supplier
Healthcare and consumer packaging are growing, resilient end markets for specialty polymer additives — medical devices require specific functional polymers (antimicrobial, sterilizable, regulatory-compliant); consumer packaging requires consistent color matching and functional properties; these markets have non-cyclical demand characteristics
Clariant acquisition elevated Avient from a U.S.-centric company to a global specialty materials business with European and Asian operations in color masterbatch — expanding geographic reach and customer base significantly

Risks to watch — SCSC

Technology hardware distribution margins are structurally thin — hardware price deflation (scanners, cameras, printers declining in price year over year) pressures per-unit margins; ScanSource must grow volumes or shift to higher-margin software to sustain revenue and margin
Direct vendor programs (Zebra, Honeywell selling directly to large end users) can bypass ScanSource in large accounts — technology vendors increasingly pursue large enterprise customers directly, reducing the distributor's role in high-volume accounts
Economic sensitivity — technology equipment spending is discretionary for many end users; in economic downturns, VARs' customers defer hardware purchases, reducing ScanSource's order volumes

Risks to watch — AVNT

Commodity polymer distribution segment carries low margins and masks specialty business's true economics — the distribution segment generates revenue with low gross margins; investors focus on specialty segment profitability to assess the underlying business quality
End market cyclicality in automotive and industrial segments — transportation and industrial machinery are cyclically sensitive; Avient's SEM segment (engineered composites for transportation) experiences demand cycles with these industries
Raw material cost pass-through — polymer and additive raw material costs fluctuate with petroleum and chemical commodity prices; Avient must pass through raw material cost increases to maintain margins, which requires pricing discipline and may create customer friction

Frequently asked questions

VAR definition: a value-added reseller (VAR) is a company that adds services, customization, integration, or support to a technology product before reselling it to an end user; a barcode scanning VAR doesn't just sell a handheld scanner — it also: assesses the customer's warehouse or retail environment to determine the right scanning technology; designs the system architecture (how many scanners, what connectivity, integration with inventory management software); configures the scanners with the right settings (keyboard emulation, communication protocols, custom beep tones for scan confirmation); installs the hardware on the customer's site; trains employees on using the equipment; provides ongoing technical support and equipment replacement. Why ScanSource serves VARs: most end users (retail stores, warehouse operators, healthcare providers, restaurants) don't want to buy barcode scanners directly from manufacturers like Zebra or Honeywell — they want a local expert who understands their specific industry and application; VARs provide this local expertise; however, VARs (which are typically small businesses of 5-50 people) don't buy enough volume to justify a direct manufacturer relationship or to manage logistics for 20+ product brands; ScanSource aggregates these VARs' purchasing power, maintains inventory of hundreds of technology products, provides technical support, and enables each VAR to offer customers a broad product line without maintaining that inventory themselves. ScanSource's value to VARs: ScanSource carries the inventory risk (VARs order as needed rather than stocking products); ScanSource provides product expertise (helping VARs compare products and select the right one for a customer's application); ScanSource provides financing (net-30 or net-60 credit terms to VARs who would otherwise need to self-finance inventory purchases); ScanSource provides pre-sales and post-sales technical support.

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