Perficient (NASDAQ: PRFT) and Synacor (NASDAQ:SYNC) are both small-cap 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.
Insider and Institutional Ownership
79.7% of Perficient shares are owned by institutional investors. Comparatively, 30.1% of Synacor shares are owned by institutional investors. 3.7% of Perficient shares are owned by company insiders. Comparatively, 21.9% of Synacor shares are owned by company 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.
This table compares Perficient and Synacor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Perficient and Synacor’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Perficient||$486.98 million||1.38||$20.45 million||$0.47||40.85|
|Synacor||$127.37 million||0.76||-$10.74 million||($0.40)||-6.25|
Perficient has higher revenue and earnings than Synacor. Synacor is trading at a lower price-to-earnings ratio than Perficient, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Perficient has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Synacor has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Perficient and Synacor, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Perficient currently has a consensus price target of $21.50, suggesting a potential upside of 11.98%. Synacor has a consensus price target of $5.00, suggesting a potential upside of 100.00%. Given Synacor’s higher possible upside, analysts clearly believe Synacor is more favorable than Perficient.
Perficient beats Synacor on 10 of the 13 factors compared between the two stocks.
Perficient Company Profile
Perficient, Inc. is an information technology and management consulting firm. The Company’s solutions include business intelligence and analytics, commerce, content management, custom applications, platform implementations, portals and collaboration, business integration and application program interfaces, management consulting, business process management, and customer relationship management, among others. It provides services to the healthcare (pharma and life sciences), financial services (banking and insurance), retail and consumer goods, automotive and transport products, electronics and computer hardware, telecommunications, manufacturing, business services, and leisure, and media and entertainment markets, among others.
Synacor Company Profile
Synacor, Inc. is a technology development, multiplatform services and revenue partner for video, Internet and communications providers, device manufacturers and enterprises. The Company enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, actionable data and implementation. Through its Managed Portals and Advertising solutions, the Company enables its customers to earn revenue by monetizing media among their consumers. Its Managed Portals are delivered across devices and under its customers’ own brand names. The Company delivers content, such as top news, entertainment, and long- and short-form video and applications, on its Managed Portals. In addition, consumers have the ability through portals to manage their e-mail and messaging, pay bills, receive special promotions and perform other account management needs.
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