Synnex Corporation (NYSE: SNX) and Radcom (NASDAQ:RDCM) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Synnex Corporation and Radcom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synnex Corporation 1.89% 16.58% 6.41%
Radcom -0.27% 0.71% 0.55%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Synnex Corporation and Radcom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synnex Corporation 0 2 4 1 2.86
Radcom 0 0 2 0 3.00

Synnex Corporation currently has a consensus target price of $135.71, indicating a potential upside of 5.57%. Radcom has a consensus target price of $27.00, indicating a potential upside of 31.39%. Given Radcom’s stronger consensus rating and higher probable upside, analysts plainly believe Radcom is more favorable than Synnex Corporation.

Dividends

Synnex Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Radcom does not pay a dividend. Synnex Corporation pays out 16.3% of its earnings in the form of a dividend.

Risk & Volatility

Synnex Corporation has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Radcom has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Insider & Institutional Ownership

71.9% of Synnex Corporation shares are owned by institutional investors. Comparatively, 12.9% of Radcom shares are owned by institutional investors. 3.2% of Synnex Corporation shares are owned by company insiders. Comparatively, 69.0% of Radcom 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.

Valuation and Earnings

This table compares Synnex Corporation and Radcom’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Synnex Corporation $14.06 billion 0.37 $234.94 million $7.37 17.44
Radcom $29.51 million 9.16 $1.91 million ($0.01) -2,055.00

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

Summary

Synnex Corporation beats Radcom on 10 of the 17 factors compared between the two stocks.

Synnex Corporation Company Profile

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.

Radcom Company Profile

RADCOM Ltd. (RADCOM) provides service assurance and customer experience management solutions for communication service providers (CSPs). The Company provides solutions for networks, including long-term evolution (LTE), LTE Advanced (LTE-A), voice over LTE (VoLTE), Internet protocol multimedia subsystem (IMS), Voice over Internet protocol (VoIP), universal mobile telecommunications system (UMTS) or global system for mobile communications (GSM) and mobile broadband. Its software-based solutions enable CSPs to manage both existing networks and network functions virtualization (NFV) based architectures. Its products and solutions include The MaveriQ Solution for Service Assurance and customer experience management (CEM). The MaveriQ solution is a probe-based customer and service assurance solution designed to enable CSPs to carry out end-to-end voice and data quality monitoring and to manage their networks and services. The MaveriQ solution offers analysis and troubleshooting tools.

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