Qualys (NASDAQ: QLYS) and Synchronoss Technologies (NASDAQ:SNCR) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.
Volatility and Risk
Qualys has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Synchronoss Technologies has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.
Earnings and Valuation
This table compares Qualys and Synchronoss Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Qualys||$211.63 million||9.18||$52.41 million||$1.02||50.78|
|Synchronoss Technologies||$476.75 million||0.85||$54.33 million||$0.44||20.91|
Synchronoss Technologies has higher revenue and earnings than Qualys. Synchronoss Technologies is trading at a lower price-to-earnings ratio than Qualys, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
73.6% of Qualys shares are owned by institutional investors. Comparatively, 74.1% of Synchronoss Technologies shares are owned by institutional investors. 30.2% of Qualys shares are owned by company insiders. Comparatively, 10.5% of Synchronoss Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Qualys and Synchronoss Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Qualys and Synchronoss Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Qualys presently has a consensus price target of $45.30, indicating a potential downside of 12.55%. Synchronoss Technologies has a consensus price target of $17.57, indicating a potential upside of 90.99%. Given Synchronoss Technologies’ higher probable upside, analysts clearly believe Synchronoss Technologies is more favorable than Qualys.
Qualys beats Synchronoss Technologies on 9 of the 14 factors compared between the two stocks.
Qualys, Inc. is a provider of cloud-based security and compliance solutions. The Company’s solutions enable organizations to identify security risks to their information technology (IT) infrastructures, help protect their IT systems and applications from cyber-attacks. Its suite of security and compliance solutions delivered on its Qualys Cloud Platform enables its customers to identify their IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions and verify the implementation of such actions. Its Qualys Cloud Platform consists of a suite of IT security and compliance solutions. The Qualys Cloud Suite includes solutions, such as Vulnerability Management, Continuous Monitoring, Cloud Agent, AssetView, ThreatPROTECT, Policy Compliance, Payment Card Industry Compliance, Security Assessment Questionnaire, Web Application Scanning and Web Application Firewall. It provides its solutions through a software-as-a-service model.
About Synchronoss Technologies
Synchronoss Technologies, Inc. is a global software and services company, which provides technologies and services for the mobile transformation of business. The Company’s portfolio in the Consumer and Enterprise markets contains offerings, such as personal cloud, secure-mobility, identity management and scalable messaging platforms, products and solutions. Its products and platforms are designed to enable multiple converged communication services to be managed across a range of distribution channels, including e-commerce, m-commerce, telesales, customer stores, indirect and other retail outlets. The Company operates in and markets their solutions and services directly through their sales organizations in North America, Europe, the Middle East and Africa (EMEA), Latin America and the Asia-Pacific region. It delivers technologies for mobile transformation to service provider and enterprise customers in regulated verticals and use cases.
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