Reviewing Synaptics (NASDAQ:SYNA) & QUALCOMM (NASDAQ:QCOM)

QUALCOMM (NASDAQ:QCOM) and Synaptics (NASDAQ:SYNA) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Valuation & Earnings

This table compares QUALCOMM and Synaptics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QUALCOMM	$44.28 billion	4.13	$10.14 billion	$4.89	34.91
Synaptics	$1.11 billion	2.49	-$47.80 million	($1.16)	-61.13

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

Risk and Volatility

QUALCOMM has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Institutional & Insider Ownership

74.3% of QUALCOMM shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 0.1% of QUALCOMM shares are owned by insiders. Comparatively, 0.5% of Synaptics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for QUALCOMM and Synaptics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QUALCOMM	1	9	13	1	2.58
Synaptics	1	1	8	1	2.82

QUALCOMM presently has a consensus target price of $190.38, indicating a potential upside of 11.53%. Synaptics has a consensus target price of $87.88, indicating a potential upside of 23.92%. Given Synaptics’ stronger consensus rating and higher possible upside, analysts plainly believe Synaptics is more favorable than QUALCOMM.

Profitability

This table compares QUALCOMM and Synaptics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QUALCOMM	26.77%	40.35%	19.74%
Synaptics	-4.45%	4.32%	2.32%

Summary

QUALCOMM beats Synaptics on 9 of the 14 factors compared between the two stocks.

About QUALCOMM

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

About Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.