Financial Comparison: Synacor (SYNC) & Internap (INAP)
Synacor (NASDAQ:SYNC) and Internap (NASDAQ:INAP) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
26.5% of Synacor shares are held by institutional investors. Comparatively, 83.9% of Internap shares are held by institutional investors. 18.6% of Synacor shares are held by insiders. Comparatively, 5.9% of Internap shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Synacor and Internap, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Synacor currently has a consensus target price of $5.00, suggesting a potential upside of 136.97%. Internap has a consensus target price of $21.00, suggesting a potential upside of 95.35%. Given Synacor’s higher possible upside, research analysts clearly believe Synacor is more favorable than Internap.
Risk and Volatility
Synacor has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Internap has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500.
This table compares Synacor and Internap’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Synacor and Internap’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Synacor||$140.03 million||0.59||-$9.77 million||($0.27)||-7.81|
|Internap||$280.72 million||0.81||-$45.34 million||($1.55)||-6.94|
Synacor has higher earnings, but lower revenue than Internap. Synacor is trading at a lower price-to-earnings ratio than Internap, indicating that it is currently the more affordable of the two stocks.
Synacor Company Profile
Synacor, Inc. operates as a technology development, multiplatform services, and revenue partner for video, Internet, and communications providers; and device manufacturers, governments, and enterprises. It enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, and actionable data and implementation. The company, through its managed portals and advertising solutions, enables its customers to earn revenue by monetizing media among their consumers. It also offers recurring and fee-based revenue solutions, such as Cloud ID Authentication that offers home-based auto-authentication and social login, which enhances the consumer experience by reducing login failures; Email/Collaboration Services that include white-label hosting, security, and migration; and paid content and premium services. The company was formerly known as CKMP, Inc. and changed its name to Synacor, Inc. in July 2001. Synacor, Inc. was founded in 1998 and is headquartered in Buffalo, New York.
Internap Company Profile
Internap Corporation provides Internet infrastructure services. It operates through two business segments, INAP COLO and INAP CLOUD. The INAP COLO segment offers colocation services, including physical space within data centers and related services, such as power, interconnection, environmental controls, monitoring, and security; and Internet protocol (IP) connectivity services comprising its patented Performance IP and content delivery network services, IP routing hardware and software platforms, and Managed Internet Route Optimizer controllers. This segment offers its colocation services through 56 data centers and 97 points of presence worldwide. The INAP CLOUD segment provides hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting that includes the provision and maintenance of hardware, data center infrastructure, and interconnection that enables its customers to own and manage their software applications and content. This segment offers cloud and managed hosting services, which comprise compute and storage services, as well as a single tenant infrastructure environment through an integrated platform that includes servers, storage, and network. The company serves various industries, including healthcare; advertising technology; financial; technology infrastructure; and gaming and software. The company was formerly known as Internap Network Services Corporation and changed its name to Internap Corporation in November 2014. Internap Corporation was founded in 1996 and is headquartered in Reston, Virginia.
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