Carbonite (NASDAQ: CARB) and Synacor (NASDAQ:SYNC) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Volatility and Risk

Carbonite has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, Synacor has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Insider & Institutional Ownership

93.7% of Carbonite shares are owned by institutional investors. Comparatively, 16.2% of Synacor shares are owned by institutional investors. 12.2% of Carbonite shares are owned by company insiders. Comparatively, 21.9% of Synacor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Carbonite and Synacor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carbonite 0.29% 36.43% 2.35%
Synacor -13.14% -42.68% -18.80%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Carbonite and Synacor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carbonite 0 1 4 0 2.80
Synacor 0 2 4 0 2.67

Carbonite currently has a consensus price target of $25.60, indicating a potential upside of 20.47%. Synacor has a consensus price target of $5.25, indicating a potential upside of 114.29%. Given Synacor’s higher possible upside, analysts plainly believe Synacor is more favorable than Carbonite.

Valuation & Earnings

This table compares Carbonite and Synacor’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Carbonite $221.57 million 2.67 $6.83 million $0.02 1,062.50
Synacor $123.65 million 0.75 -$4.28 million ($0.51) -4.80

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

Summary

Carbonite beats Synacor on 9 of the 12 factors compared between the two stocks.

Carbonite Company Profile

Carbonite, Inc. provides data protection solutions, including cloud, hybrid and on-premise backup and restore, disaster recovery as a service (DRaaS) and e-mail archiving. The Company’s solutions provide enterprise-grade data protection and recovery capabilities to its customers. The Company’s small and medium-sized businesses (SMBs) plans include Carbonite Computer Backup; Carbonite Server Backup, such as Carbonite Office Power and Carbonite Office Ultimate; EVault Cloud Backup; DRaaS, and e-mail archiving. Carbonite Computer Backup enables users to automatically back up files directly to the cloud. Carbonite Server Backup provides cloud and hybrid backup for physical and virtual servers with management capabilities, including scheduling, retention, bandwidth and compression settings, and monitoring and reporting via a personalized server dashboard. Its e-mail archiving solutions include MailStore Server, MailStore Service Provider Edition and MailStore Home.

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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