Systemax (NYSE: SYX) and Tech Data Corporation (NASDAQ:TECD) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Institutional & Insider Ownership

25.2% of Systemax shares are owned by institutional investors. 69.6% of Systemax shares are owned by insiders. Comparatively, 1.6% of Tech Data Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Systemax pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Tech Data Corporation does not pay a dividend. Systemax pays out -114.3% of its earnings in the form of a dividend.

Risk & Volatility

Systemax has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Tech Data Corporation has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Systemax and Tech Data Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Systemax 0 0 1 0 3.00
Tech Data Corporation 0 1 6 0 2.86

Systemax presently has a consensus target price of $31.00, indicating a potential upside of 23.80%. Tech Data Corporation has a consensus target price of $107.50, indicating a potential upside of 25.16%. Given Tech Data Corporation’s higher possible upside, analysts plainly believe Tech Data Corporation is more favorable than Systemax.

Profitability

This table compares Systemax and Tech Data Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Systemax -0.87% 12.27% 5.14%
Tech Data Corporation 0.63% 11.60% 3.02%

Earnings and Valuation

This table compares Systemax and Tech Data Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Systemax $1.71 billion 0.54 $42.30 million ($0.35) -71.54
Tech Data Corporation $30.46 billion 0.11 $499.34 million $5.31 16.18

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

Summary

Systemax beats Tech Data Corporation on 9 of the 16 factors compared between the two stocks.

About Systemax

Systemax Inc. is a direct marketer of brand name and private label products. The Company’s segments are Industrial Products Group (IPG), EMEA Technology Products Group (EMEA), and Corporate and Other (Corporate). The IPG segment sells an array of maintenance, repair and operational (MRO) products, which are marketed in North America. The Company offers a selection of products that are manufactured for its own design and marketed under the trademarks: Global, GlobalIndustrial.com, Nexel Relius, Paramount and Interion. EMEA sells products categorized as Information and Communications Technology (ICT) and Consumer Electronics (CE), as well as related technical services, such as configuration, implementation, network security, and other technical services. CE products include television and video; audio; cameras and surveillance; Global Positioning System (GPS); cell phones; video games, and home and electronics accessories.

About Tech Data Corporation

Tech Data Corporation is a wholesale distributor of technology products. The Company serves as a link in the technology supply chain by bringing products from the technology vendors to market, as well as providing its customers with logistics capabilities and services. It operates through the segment of distributing technology products, logistics management and other value-added services. It operates in two geographic segments: the Americas and Europe. It provides resellers training and technical support suite of electronic commerce tools customized shipping documents product configuration or integration services and access to financing programs. Its customers include value-added resellers, direct marketers, retailers and corporate resellers who support the diverse technology needs of end users. It sells its products to customers in approximately 100 countries throughout North America, South America, Europe, the Middle East and Africa.

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