Comparing Synaptics (SYNA) & HP (HPQ)
Synaptics (NASDAQ: SYNA) and HP (NYSE:HPQ) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Synaptics and HP’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Synaptics||$1.72 billion||0.75||$174.50 million||$1.38||27.62|
|HP||$50.64 billion||0.63||$4.20 billion||$1.38||13.86|
HP has higher revenue and earnings than Synaptics. HP is trading at a lower price-to-earnings ratio than Synaptics, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Synaptics and HP, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Synaptics presently has a consensus target price of $54.43, suggesting a potential upside of 42.82%. HP has a consensus target price of $20.58, suggesting a potential upside of 7.61%. Given Synaptics’ higher possible upside, equities analysts clearly believe Synaptics is more favorable than HP.
HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.8%. Synaptics does not pay a dividend. HP pays out 38.4% of its earnings in the form of a dividend.
Volatility and Risk
Synaptics has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, HP has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.
This table compares Synaptics and HP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
97.7% of Synaptics shares are held by institutional investors. Comparatively, 78.5% of HP shares are held by institutional investors. 3.6% of Synaptics shares are held by company insiders. Comparatively, 0.6% of HP 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.
HP beats Synaptics on 8 of the 15 factors compared between the two stocks.
Synaptics Company Profile
Synaptics Incorporated is engaged in the development, marketing and sale of intuitive human interface solutions for electronic devices and products. The Company is a developer and supplier of custom-designed human interface product solutions that enable people to interact with a range of mobile computing, communications, entertainment and other electronic devices. Its products include ClearPad, ClearView, TouchView, Natural ID, TouchPad, SecurePad, ClickPad and ForcePad. Its other product solutions include dual pointing solutions, TouchStyk, and TouchButtons. Its dual pointing solutions offer TouchPad with a pointing stick in a single notebook computer, enabling users to select their interface of choice. TouchStyk is a self-contained pointing stick module that uses capacitive technology similar to that used in its TouchPad. TouchButtons provide capacitive buttons and scrolling controls for an interface solution designed to replace mechanical buttons.
HP Company Profile
HP Inc. is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses, and enterprises, including customers in the government, health and education sectors. The Company provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. Its segments include Personal Systems, Printing and Corporate Investments. The Personal Systems segment provides Commercial personal computers (PCs), Consumer PCs, workstations, thin clients, Commercial tablets and mobility devices, retail point-of-sale systems, displays and other accessories, software, support and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions and services, as well as scanning devices. The Corporate Investments segment includes the operations of HP Labs and certain business incubation projects.
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