Head-To-Head Contrast: EMCORE (NASDAQ:EMKR) & Synaptics (NASDAQ:SYNA)

Synaptics (NASDAQ:SYNA) and EMCORE (NASDAQ:EMKR) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Synaptics and EMCORE, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 1 5 2 0 2.13
EMCORE 0 0 3 0 3.00



Synaptics currently has a consensus target price of $35.38, suggesting a potential downside of 9.43%. EMCORE has a consensus target price of $5.15, suggesting a potential upside of 69.41%. Given EMCORE’s stronger consensus rating and higher possible upside, analysts plainly believe EMCORE is more favorable than Synaptics.

Profitability

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

Net Margins Return on Equity Return on Assets
Synaptics -1.56% 12.74% 6.04%
EMCORE -30.49% -15.41% -11.69%

Risk and Volatility

Synaptics has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, EMCORE has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synaptics $1.47 billion 0.87 -$22.90 million $2.50 15.62
EMCORE $85.62 million 1.02 -$17.45 million ($0.53) -5.74

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

Insider and Institutional Ownership

95.8% of Synaptics shares are held by institutional investors. Comparatively, 53.5% of EMCORE shares are held by institutional investors. 2.7% of Synaptics shares are held by insiders. Comparatively, 1.7% of EMCORE shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Synaptics beats EMCORE on 8 of the 13 factors compared between the two stocks.

Synaptics Company Profile

Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. The company offers its products and solutions for smartphones, tablets, and touchscreen applications, as well as mobile, handheld, wireless, and entertainment devices; notebook applications; and other personal computer (PC) product applications. Its products include 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 entry-level smartphones; TouchView products, which integrate touch and display technologies to deliver performance and simplified design; and Natural ID, a fingerprint ID product that is used in smartphones, tablets, notebook PCs, PC peripherals, and other applications. The company also provides 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 to the TouchPad solution; ForcePad, a thinner version of its ClickPad; AudioSmart personal voice and audio solutions; VideoSmart single-chip 4K UHD media processors for TVs, set-top boxes, and over-the-top streaming devices; and ImagingSmart solutions. In addition, it offers 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; and TouchButtons, which provides capacitive buttons and scrolling controls, as well as display interface products. The company sells its products through direct sales, outside sales representatives, distributors, and resellers. It serves smartphone, tablet, and PC original equipment manufacturers; and consumer electronics manufacturers. The company was founded in 1986 and is headquartered in San Jose, California.

EMCORE Company Profile

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in California. It offers broadband products comprising cable television; laser, receiver, and photodetector component products; radio frequency over glass FTTP products; satellite/microwave communications products; and wireless communications products. The company also provides chip devices products, including high-power gain chips, GPON fiber-to-the-premises, and data center chip products; and navigation systems products, such as fiber optic gyroscope products and inertial measurement units and navigation systems products. It sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.

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