Critical Review: Radcom (RDCM) & Synnex (SNX)
Radcom (NASDAQ: RDCM) and Synnex (NYSE:SNX) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
14.3% of Radcom shares are owned by institutional investors. Comparatively, 71.7% of Synnex shares are owned by institutional investors. 69.0% of Radcom shares are owned by insiders. Comparatively, 3.2% of Synnex shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for Radcom and Synnex, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Radcom presently has a consensus target price of $27.00, suggesting a potential upside of 32.68%. Synnex has a consensus target price of $136.88, suggesting a potential upside of 4.71%. Given Radcom’s stronger consensus rating and higher possible upside, equities analysts plainly believe Radcom is more favorable than Synnex.
Synnex pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Radcom does not pay a dividend. Synnex pays out 16.3% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Radcom and Synnex’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Radcom||$29.51 million||9.08||$1.91 million||($0.01)||-2,032.97|
|Synnex||$14.06 billion||0.37||$234.94 million||$7.37||17.74|
Synnex has higher revenue and earnings than Radcom. Radcom is trading at a lower price-to-earnings ratio than Synnex, indicating that it is currently the more affordable of the two stocks.
This table compares Radcom and Synnex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Radcom has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Synnex has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Synnex beats Radcom on 10 of the 17 factors compared between the two stocks.
Radcom Company Profile
RADCOM Ltd. (RADCOM) provides service assurance and customer experience management solutions for communication service providers (CSPs). The Company provides solutions for networks, including long-term evolution (LTE), LTE Advanced (LTE-A), voice over LTE (VoLTE), Internet protocol multimedia subsystem (IMS), Voice over Internet protocol (VoIP), universal mobile telecommunications system (UMTS) or global system for mobile communications (GSM) and mobile broadband. Its software-based solutions enable CSPs to manage both existing networks and network functions virtualization (NFV) based architectures. Its products and solutions include The MaveriQ Solution for Service Assurance and customer experience management (CEM). The MaveriQ solution is a probe-based customer and service assurance solution designed to enable CSPs to carry out end-to-end voice and data quality monitoring and to manage their networks and services. The MaveriQ solution offers analysis and troubleshooting tools.
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.
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