Analyzing Synaptics (SYNA) & TOKYO ELECTRON/ADR (TOELY)

Synaptics (NASDAQ:SYNA) and TOKYO ELECTRON/ADR (OTCMKTS:TOELY) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

98.6% of Synaptics shares are held by institutional investors. 2.7% of Synaptics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Synaptics has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, TOKYO ELECTRON/ADR has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Synaptics and TOKYO ELECTRON/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 0 6 3 0 2.33
TOKYO ELECTRON/ADR 0 1 0 0 2.00

Synaptics presently has a consensus price target of $44.11, suggesting a potential upside of 55.32%. Given Synaptics’ stronger consensus rating and higher probable upside, analysts clearly believe Synaptics is more favorable than TOKYO ELECTRON/ADR.

Dividends

TOKYO ELECTRON/ADR pays an annual dividend of $0.85 per share and has a dividend yield of 2.5%. Synaptics does not pay a dividend. TOKYO ELECTRON/ADR pays out 29.5% of its earnings in the form of a dividend.

Profitability

This table compares Synaptics and TOKYO ELECTRON/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synaptics 1.39% 15.21% 7.28%
TOKYO ELECTRON/ADR 19.56% 33.09% 21.34%

Earnings & Valuation

This table compares Synaptics and TOKYO ELECTRON/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synaptics $1.63 billion 0.60 -$124.10 million $1.98 14.34
TOKYO ELECTRON/ADR $10.21 billion 2.23 $1.92 billion $2.88 11.96

TOKYO ELECTRON/ADR has higher revenue and earnings than Synaptics. TOKYO ELECTRON/ADR is trading at a lower price-to-earnings ratio than Synaptics, indicating that it is currently the more affordable of the two stocks.

Summary

TOKYO ELECTRON/ADR beats Synaptics on 9 of the 16 factors compared between the two stocks.

About Synaptics

Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. The company offers its products and solutions for smartphones, tablets, and touchscreen applications, as well as mobile, handheld, wireless, and entertainment devices; notebook applications; and other personal computer (PC) product applications. Its products include ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for entry-level smartphones; TouchView products, which integrate touch and display technologies to deliver performance and simplified design; and Natural ID, a fingerprint ID product that is used in smartphones, tablets, notebook PCs, PC peripherals, and other applications. The company also provides TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design to the TouchPad solution; ForcePad, a thinner version of its ClickPad; AudioSmart personal voice and audio solutions; VideoSmart single-chip 4K UHD media processors for TVs, set-top boxes, and over-the-top streaming devices; and ImagingSmart solutions. In addition, it offers TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; and TouchButtons, which provides capacitive buttons and scrolling controls, as well as display interface products. The company sells its products through direct sales, outside sales representatives, distributors, and resellers. It serves smartphone, tablet, and PC original equipment manufacturers; and consumer electronics manufacturers. The company was founded in 1986 and is headquartered in San Jose, California.

About TOKYO ELECTRON/ADR

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, distributes, and sells semiconductor and flat panel display (FPD) production equipment in Japan, North America, Europe, South Korea, Taiwan, China, and internationally. The company's Semiconductor Production Equipment segment offers coaters/developers, plasma etch systems, and single wafer deposition systems and cleaning systems used in wafer processing; wafer probers used in wafer testing process; and electrochemical deposition systems and wafer bonders/debonders used in packaging processes. Its Flat Panel Display Production Equipment segment provides coaters/developers and plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED panels. The company also offers logistic, facility maintenance, and insurance services. Tokyo Electron Limited was founded in 1963 and is headquartered in Tokyo, Japan.

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