Synaptics (SYNA) versus Hewlett Packard Enterprise (HPE) Head to Head Contrast

Synaptics (NASDAQ: SYNA) and Hewlett Packard Enterprise (NYSE:HPE) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Institutional and Insider Ownership

97.7% of Synaptics shares are owned by institutional investors. Comparatively, 81.3% of Hewlett Packard Enterprise shares are owned by institutional investors. 3.7% of Synaptics shares are owned by company insiders. Comparatively, 0.9% of Hewlett Packard Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Synaptics and Hewlett Packard Enterprise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synaptics 2.84% 16.51% 9.36%
Hewlett Packard Enterprise 0.29% 9.04% 3.72%

Volatility & Risk

Synaptics has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Hewlett Packard Enterprise has a beta of 2.72, suggesting that its share price is 172% more volatile than the S&P 500.

Dividends

Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.9%. Synaptics does not pay a dividend. Hewlett Packard Enterprise pays out 371.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Synaptics and Hewlett Packard Enterprise’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Synaptics $1.72 billion 0.77 $174.50 million $1.38 28.65
Hewlett Packard Enterprise $48.08 billion 0.46 $7.31 billion $0.07 192.74

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Synaptics and Hewlett Packard Enterprise, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 5 3 8 0 2.19
Hewlett Packard Enterprise 2 16 11 0 2.31

Synaptics currently has a consensus target price of $54.43, indicating a potential upside of 37.65%. Hewlett Packard Enterprise has a consensus target price of $18.00, indicating a potential upside of 33.43%. Given Synaptics’ higher possible upside, equities analysts plainly believe Synaptics is more favorable than Hewlett Packard Enterprise.

Summary

Synaptics beats Hewlett Packard Enterprise on 10 of the 16 factors compared between the two stocks.

Synaptics Company Profile

Synaptics Incorporated is engaged in the development, marketing and sale of intuitive human interface solutions for electronic devices and products. The Company is a developer and supplier of custom-designed human interface product solutions that enable people to interact with a range of mobile computing, communications, entertainment and other electronic devices. Its products include ClearPad, ClearView, TouchView, Natural ID, TouchPad, SecurePad, ClickPad and ForcePad. Its other product solutions include dual pointing solutions, TouchStyk, and TouchButtons. Its dual pointing solutions offer TouchPad with a pointing stick in a single notebook computer, enabling users to select their interface of choice. TouchStyk is a self-contained pointing stick module that uses capacitive technology similar to that used in its TouchPad. TouchButtons provide capacitive buttons and scrolling controls for an interface solution designed to replace mechanical buttons.

Hewlett Packard Enterprise Company Profile

Hewlett Packard Enterprise Company is a provider of technology solutions. The Company’s segments include: Enterprise Group, Software, Financial Services and Corporate Investments. The Enterprise Group segment provides its customers with the technology infrastructure they need to optimize traditional information technology (IT). The Software segment allows its customers to automate IT operations to simplify, accelerate and secure business processes and drives the analytics that turn raw data into actionable knowledge. The Financial Services segment enables flexible IT consumption models, financial architectures and customized investment solutions for its customers. The Corporate Investments segment includes Hewlett Packard Labs and certain business incubation projects, among others.

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