Critical Review: Synchronoss Technologies (NASDAQ:SNCR) and Yalla Group (NYSE:YALA)

Synchronoss Technologies (NASDAQ:SNCR) and Yalla Group (NYSE:YALA) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Institutional and Insider Ownership

51.7% of Synchronoss Technologies shares are held by institutional investors. Comparatively, 4.7% of Yalla Group shares are held by institutional investors. 19.9% of Synchronoss Technologies shares are held by company insiders. Comparatively, 52.2% of Yalla Group shares are held 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.

Volatility and Risk

Synchronoss Technologies has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Yalla Group has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Profitability

This table compares Synchronoss Technologies and Yalla Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synchronoss Technologies	-5.69%	24.44%	3.59%
Yalla Group	42.03%	18.03%	16.15%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Synchronoss Technologies and Yalla Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchronoss Technologies	1	2	0	0	1.67
Yalla Group	0	1	0	0	2.00

Earnings and Valuation

This table compares Synchronoss Technologies and Yalla Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchronoss Technologies	$170.91 million	0.61	$6.17 million	($1.02)	-8.82
Yalla Group	$337.07 million	2.45	$149.84 million	$0.79	6.82

Yalla Group has higher revenue and earnings than Synchronoss Technologies. Synchronoss Technologies is trading at a lower price-to-earnings ratio than Yalla Group, indicating that it is currently the more affordable of the two stocks.

Summary

Yalla Group beats Synchronoss Technologies on 9 of the 12 factors compared between the two stocks.

About Synchronoss Technologies

Synchronoss Technologies, Inc. provides cloud, messaging, digital, and network management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Synchronoss Personal Cloud platform that allows customers' subscribers to backup and protect, engage with, and manage their personal content. It also provides Synchronoss' Messaging platform comprising advanced messaging platform and email suites; and OnboardX products, including mobile content transfer solution that offers wireless transfer of content from one mobile smart device to another in a carrier retail location or at home/work, etc., as well as out of box experience solution, a device setup solution that assists customers in setting up the features of new device, such as Wi-Fi, email, social network accounts and voicemail, prompting restoration of content, and enrollment in a cloud service. In addition, the company provides NetworkX products comprising spatialNX, an enterprise-wide access to network information, including physical location, specifications, attributes, connectivity, and capacity for every plant asset; ConnectNX, a system that eliminates manual handling of service orders and manages the full order lifecycle between customer and supplier through automation and rules-based validation; and ExpenseNX, a financial analytics platform. Further, it offers professional services, such as consulting, installation and deployment, configuration, systems integration, and support services; and software development and customization services. The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was incorporated in 2000 and is headquartered in Bridgewater, New Jersey.

About Yalla Group

Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.