Head-To-Head Analysis: Synnex Corporation (SNX) versus Crossroads Systems (CRDSQ)

Synnex Corporation (NYSE: SNX) and Crossroads Systems (OTCMKTS:CRDSQ) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

Synnex Corporation has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Crossroads Systems has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500.

Valuation and Earnings

This table compares Synnex Corporation and Crossroads Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Synnex Corporation $14.06 billion 0.37 $234.94 million $7.37 17.84
Crossroads Systems N/A N/A N/A ($1.08) -2.50

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

Institutional and Insider Ownership

71.9% of Synnex Corporation shares are owned by institutional investors. Comparatively, 7.5% of Crossroads Systems shares are owned by institutional investors. 3.2% of Synnex Corporation shares are owned by company insiders. Comparatively, 27.4% of Crossroads Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Synnex Corporation and Crossroads Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synnex Corporation 1.89% 16.58% 6.41%
Crossroads Systems -518.75% -22.99% -7.88%

Dividends

Synnex Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Crossroads Systems does not pay a dividend. Synnex Corporation pays out 16.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Synnex Corporation and Crossroads Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synnex Corporation 0 2 4 1 2.86
Crossroads Systems 0 0 0 0 N/A

Synnex Corporation currently has a consensus price target of $135.71, suggesting a potential upside of 3.20%. Given Synnex Corporation’s higher possible upside, equities analysts clearly believe Synnex Corporation is more favorable than Crossroads Systems.

Summary

Synnex Corporation beats Crossroads Systems on 10 of the 13 factors compared between the two stocks.

Synnex Corporation Company Profile

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.

Crossroads Systems Company Profile

Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.

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