Financial Analysis: Avid Technology (AVID) versus Synnex (SNX)
Avid Technology (NASDAQ: AVID) and Synnex (NYSE:SNX) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
This table compares Avid Technology and Synnex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Avid Technology and Synnex, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avid Technology currently has a consensus target price of $4.50, indicating a potential downside of 23.60%. Synnex has a consensus target price of $136.88, indicating a potential upside of 0.19%. Given Synnex’s stronger consensus rating and higher possible upside, analysts plainly believe Synnex is more favorable than Avid Technology.
Earnings & Valuation
This table compares Avid Technology and Synnex’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Avid Technology||$511.93 million||0.47||$48.21 million||($0.18)||-32.72|
|Synnex||$14.06 billion||0.39||$234.94 million||$7.37||18.54|
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.
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.
Risk and Volatility
Avid Technology has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Synnex has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
Institutional & Insider Ownership
71.8% of Avid Technology shares are owned by institutional investors. Comparatively, 71.7% of Synnex shares are owned by institutional investors. 7.5% of Avid Technology shares are owned by insiders. Comparatively, 3.2% of Synnex shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Synnex beats Avid Technology on 12 of the 17 factors compared between the two stocks.
About Avid Technology
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.
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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