Contrasting Synnex Corporation (SNX) & Avid Technology (AVID)

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

Insider & Institutional Ownership

71.3% of Synnex Corporation shares are owned by institutional investors. 3.2% of Synnex Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Synnex Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Avid Technology does not pay a dividend. Synnex Corporation pays out 14.3% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Synnex Corporation and Avid Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Synnex Corporation $15.01 billion 0.31 $603.29 million $6.97 16.81
Avid Technology $440.79 million 0.41 $46.85 million N/A N/A

Synnex Corporation has higher revenue and earnings than Avid Technology.

Analyst Ratings

This is a summary of recent ratings and price targets for Synnex Corporation and Avid Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synnex Corporation 0 1 4 1 3.00
Avid Technology 0 1 0 0 2.00

Synnex Corporation presently has a consensus price target of $132.67, suggesting a potential upside of 13.25%. Avid Technology has a consensus price target of $5.00, suggesting a potential upside of 12.87%. Given Synnex Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Synnex Corporation is more favorable than Avid Technology.

Profitability

This table compares Synnex Corporation and Avid Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synnex Corporation 1.86% 16.29% 6.35%
Avid Technology -10.58% N/A -18.29%

Summary

Synnex Corporation beats Avid Technology on 12 of the 15 factors compared between the two stocks.

About Synnex Corporation

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.

About Avid Technology

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

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