Head-To-Head Analysis: Synaptics (SYNA) & HP (NYSE:HPQ)

HP (NYSE: HPQ) and Synaptics (NASDAQ:SYNA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
HP 4.66% -64.93% 9.10%
Synaptics 2.84% 16.51% 9.36%

Institutional & Insider Ownership

79.2% of HP shares are held by institutional investors. Comparatively, 97.7% of Synaptics shares are held by institutional investors. 0.6% of HP shares are held by company insiders. Comparatively, 3.6% of Synaptics shares are held by company 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.

Dividends

HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.7%. Synaptics does not pay a dividend. HP pays out 38.4% of its earnings in the form of a dividend.

Risk and Volatility

HP has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Valuation & Earnings

This table compares HP and Synaptics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HP $50.64 billion 0.64 $4.20 billion $1.38 14.11
Synaptics $1.72 billion 0.80 $174.50 million $1.38 29.57

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for HP and Synaptics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HP 0 8 13 0 2.62
Synaptics 5 3 8 0 2.19

HP presently has a consensus target price of $20.58, suggesting a potential upside of 5.68%. Synaptics has a consensus target price of $54.43, suggesting a potential upside of 33.40%. Given Synaptics’ higher probable upside, analysts plainly believe Synaptics is more favorable than HP.

Summary

HP beats Synaptics on 8 of the 15 factors compared between the two stocks.

HP Company Profile

HP Inc. is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses, and enterprises, including customers in the government, health and education sectors. The Company provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. Its segments include Personal Systems, Printing and Corporate Investments. The Personal Systems segment provides Commercial personal computers (PCs), Consumer PCs, workstations, thin clients, Commercial tablets and mobility devices, retail point-of-sale systems, displays and other accessories, software, support and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions and services, as well as scanning devices. The Corporate Investments segment includes the operations of HP Labs and certain business incubation projects.

Synaptics Company Profile

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.

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