Financial Contrast: Diebold, (DBD) and Synnex Corporation (SNX)
Diebold, (NYSE: DBD) and Synnex Corporation (NYSE:SNX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
This is a breakdown of current ratings and price targets for Diebold, and Synnex Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Diebold, presently has a consensus target price of $31.75, suggesting a potential upside of 48.02%. Synnex Corporation has a consensus target price of $132.67, suggesting a potential upside of 15.49%. Given Diebold,’s higher probable upside, equities research analysts clearly believe Diebold, is more favorable than Synnex Corporation.
Earnings & Valuation
This table compares Diebold, and Synnex Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Diebold,||$4.46 billion||0.36||$243.00 million||($3.67)||-5.84|
|Synnex Corporation||$15.01 billion||0.31||$603.29 million||$6.97||16.48|
Synnex Corporation has higher revenue and earnings than Diebold,. Diebold, is trading at a lower price-to-earnings ratio than Synnex Corporation, indicating that it is currently the more affordable of the two stocks.
Diebold, pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Synnex Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Diebold, pays out -10.9% of its earnings in the form of a dividend. Synnex Corporation pays out 14.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Diebold, is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Diebold, has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500. Comparatively, Synnex Corporation has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
This table compares Diebold, and Synnex Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
71.3% of Synnex Corporation shares are held by institutional investors. 1.4% of Diebold, shares are held by company insiders. Comparatively, 3.2% of Synnex Corporation shares are held 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.
Synnex Corporation beats Diebold, on 10 of the 16 factors compared between the two stocks.
Diebold Nixdorf, Incorporated provides connected commerce services, software and technology. The Company’s geographic segments include North America (NA), Asia Pacific (AP), Europe, Middle East and Africa (EMEA), and Latin America (LA). These segments sell and service financial self-service (FSS), retail solutions and security systems. The Company is engaged in providing connected commerce solutions to financial institutions. These solutions are supported by a field service organization. The Company provides security solutions, which combine a services portfolio and products to help address its customers’ needs. The Company provides services for a portfolio of physical security offerings, in addition to serving as a national locksmith. The Company provides voting machines for official elections and the terminals for the governmental lottery and correspondent bank.
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.
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