Financial Analysis: Senomyx (SNMX) versus Syneos Health (SYNH)

Senomyx (NASDAQ: SYNH) and Syneos Health (NASDAQ:SYNH) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Senomyx and Syneos Health’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Senomyx $29.32 million 1.67 -$1.26 million ($0.03) -33.67
Syneos Health $2.67 billion 1.86 -$138.46 million $1.94 24.90



Senomyx has higher earnings, but lower revenue than Syneos Health. Senomyx is trading at a lower price-to-earnings ratio than Syneos Health, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

30.2% of Senomyx shares are owned by institutional investors. 13.0% of Senomyx shares are owned by company insiders. Comparatively, 0.6% of Syneos Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Senomyx and Syneos Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Senomyx -9.11% -15.80% -10.48%
Syneos Health -4.32% 7.80% 3.17%

Analyst Ratings

This is a summary of recent recommendations and price targets for Senomyx and Syneos Health, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Senomyx 0 0 0 0 N/A
Syneos Health 0 2 7 0 2.78

Syneos Health has a consensus target price of $53.50, suggesting a potential upside of 10.77%. Given Syneos Health’s higher possible upside, analysts clearly believe Syneos Health is more favorable than Senomyx.

Volatility & Risk

Senomyx has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Syneos Health has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Summary

Syneos Health beats Senomyx on 9 of the 13 factors compared between the two stocks.

Senomyx Company Profile

Senomyx, Inc. discovers, develops, and commercializes flavor ingredients and natural high intensity sweeteners primarily for the packaged food, beverage, and ingredient supply industries in the United States. The company develops and/or commercializes sweet, savory and salt flavor ingredients, bitter blockers and cooling agents. It sells various flavor ingredients directly to flavor companies. The company has collaboration agreements with Ajinomoto Co., Inc.; Firmenich SA; and PepsiCo, Inc. Senomyx, Inc. was founded in 1998 and is headquartered in San Diego, California.

Syneos Health Company Profile

Syneos Health, Inc. operates as an integrated biopharmaceutical solutions company in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. It operates through two segments, Clinical Solutions and Commercial Solutions. The Clinical Solutions segment offers various clinical development services spanning Phase I to Phase IV, including full-service global studies, as well as unbundled service offerings, such as clinical monitoring, investigator recruitment, patient recruitment, data management, and study startup to assist customers with drug development process. The Commercial Solutions segment provides commercialization services, including outsourced field selling solutions, medication adherence, communications, and consulting services. Its customers include small, mid-sized, and large companies in the pharmaceutical, biotechnology, and medical device industries. Syneos Health, Inc. has a strategic collaboration with Elligo Health Research. The company was formerly known as INC Research Holdings, Inc. and changed its name to Syneos Health, Inc. in January 2018. Syneos Health, Inc. was incorporated in 2010 and is headquartered in Raleigh, North Carolina.

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