Synnex (NYSE: SNX) and Avid Technology (NASDAQ:AVID) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Synnex and Avid Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synnex 0 2 5 1 2.88
Avid Technology 1 1 0 0 1.50

Synnex presently has a consensus target price of $136.88, indicating a potential upside of 4.71%. Avid Technology has a consensus target price of $4.50, indicating a potential downside of 24.37%. Given Synnex’s stronger consensus rating and higher probable upside, research analysts plainly believe Synnex is more favorable than Avid Technology.

Risk and Volatility

Synnex has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Avid Technology has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Dividends

Synnex pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Avid Technology does not pay a dividend. Synnex pays out 16.3% of its earnings in the form of a dividend.

Institutional & Insider Ownership

71.7% of Synnex shares are owned by institutional investors. Comparatively, 71.8% of Avid Technology shares are owned by institutional investors. 3.2% of Synnex shares are owned by company insiders. Comparatively, 7.5% of Avid Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Synnex and Avid Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synnex $14.06 billion 0.37 $234.94 million $7.37 17.74
Avid Technology $511.93 million 0.48 $48.21 million ($0.18) -33.05

Synnex has higher revenue and earnings than Avid Technology. Avid Technology is trading at a lower price-to-earnings ratio than Synnex, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Synnex and Avid Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synnex 1.89% 16.58% 6.41%
Avid Technology -1.75% -5.36% 6.12%

Summary

Synnex beats Avid Technology on 11 of the 17 factors compared between the two stocks.

Synnex Company Profile

Synnex Corporation is a business process services company. The Company provides a range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement strategy. The Company operates in two segments: Technology Solutions and Concentrix. The Company’s Technology Solutions segment distributes peripherals, information technology (IT) systems, including data center server and storage solutions, system components, software, networking/communications/security equipment, and consumer electronics (CE) and complementary products. Within its Technology Solutions segment, the Company also provides systems design and integration solutions. The Company’s Concentrix segment offers a portfolio of solutions and end-to-end business services focused on customer engagement strategy, process optimization, technology innovation, front and back-office automation and business transformation.

Avid Technology Company Profile

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

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