Analyzing Synaptics (SYNA) & Lexmark International (LXK)

Synaptics (NASDAQ: SYNA) and Lexmark International (NYSE:LXK) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a summary of current recommendations for Synaptics and Lexmark International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 4 7 6 0 2.12
Lexmark International 0 0 0 0 N/A

Synaptics presently has a consensus price target of $47.53, indicating a potential upside of 17.86%. Given Synaptics’ higher probable upside, analysts clearly believe Synaptics is more favorable than Lexmark International.

Dividends

Lexmark International pays an annual dividend of $1.44 per share and has a dividend yield of 3.6%. Synaptics does not pay a dividend. Lexmark International pays out -133.3% of its earnings in the form of a dividend. Synaptics has raised its dividend for 6 consecutive years.

Insider and Institutional Ownership

97.7% of Synaptics shares are held by institutional investors. Comparatively, 81.8% of Lexmark International shares are held by institutional investors. 3.7% of Synaptics shares are held by insiders. Comparatively, 2.8% of Lexmark International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Synaptics and Lexmark International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synaptics $1.72 billion 0.80 $48.80 million $0.48 84.02
Lexmark International N/A N/A N/A ($1.08) -37.49

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

Profitability

This table compares Synaptics and Lexmark International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synaptics 1.06% 15.85% 8.73%
Lexmark International 2.17% 7.30% 2.01%

Summary

Synaptics beats Lexmark International on 10 of the 13 factors compared between the two stocks.

About Synaptics

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.

About Lexmark International

Lexmark International, Inc. is a United States-based company, which is a provider of printing and imaging products, software, solutions and services. The Company’s software scans everything from spreadsheets to medical images, and provides services to banking, healthcare, insurance and retail companies. It creates enterprise software, hardware and services that remove inefficiencies of information silos and disconnected processes. It offers various services, such as managed print services, hardware warranty and repair service, professional services and enterprise software services. It offers solutions, such as financial process automation, business process management, Web information integration and consumer loan origination. Its hardware category includes equipment collection program, and Smart multifunction product (MFP) includes device management and mobile print solutions. It produces and distributes millions of supplies each year, including ink, toner and paper.

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