Analyzing Synaptics (NASDAQ:SYNA) & SEALSQ (NASDAQ:LAES)

Synaptics (NASDAQ:SYNA) and SEALSQ (NASDAQ:LAES) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Synaptics and SEALSQ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synaptics	1	8	5	0	2.29
SEALSQ	1	1	1	0	2.00

Synaptics presently has a consensus price target of $131.00, suggesting a potential upside of 8.26%. SEALSQ has a consensus price target of $6.00, suggesting a potential upside of 91.39%. Given SEALSQ’s higher possible upside, analysts clearly believe SEALSQ is more favorable than Synaptics.

Earnings and Valuation

This table compares Synaptics and SEALSQ”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synaptics	$1.07 billion	4.35	-$47.80 million	($1.24)	-97.58
SEALSQ	$18.25 million	33.16	-$34.19 million	N/A	N/A

SEALSQ has lower revenue, but higher earnings than Synaptics.

Volatility and Risk

Synaptics has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, SEALSQ has a beta of -8.23, indicating that its stock price is 923% less volatile than the S&P 500.

Profitability

This table compares Synaptics and SEALSQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synaptics	-4.10%	4.32%	2.33%
SEALSQ	N/A	N/A	N/A

Insider & Institutional Ownership

99.4% of Synaptics shares are owned by institutional investors. Comparatively, 1.3% of SEALSQ shares are owned by institutional investors. 0.5% of Synaptics 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.

Summary

Synaptics beats SEALSQ on 8 of the 12 factors compared between the two stocks.

About Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.

About SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.