Synaptics (NASDAQ: SYNA) and Knowles Corporation (NYSE:KN) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Volatility & Risk
Synaptics has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Knowles Corporation has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
Institutional & Insider Ownership
97.7% of Synaptics shares are held by institutional investors. 3.7% of Synaptics shares are held by company insiders. Comparatively, 2.2% of Knowles Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Synaptics and Knowles Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Synaptics and Knowles Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Synaptics presently has a consensus price target of $51.07, suggesting a potential upside of 44.35%. Knowles Corporation has a consensus price target of $19.33, suggesting a potential upside of 25.13%. Given Synaptics’ higher possible upside, equities research analysts clearly believe Synaptics is more favorable than Knowles Corporation.
Earnings and Valuation
This table compares Synaptics and Knowles Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Synaptics||$1.72 billion||0.69||$174.50 million||$1.38||25.64|
|Knowles Corporation||$867.60 million||1.59||$141.10 million||($0.23)||-67.17|
Synaptics has higher revenue and earnings than Knowles Corporation. Knowles Corporation is trading at a lower price-to-earnings ratio than Synaptics, indicating that it is currently the more affordable of the two stocks.
Synaptics beats Knowles Corporation on 11 of the 13 factors compared between the two stocks.
Synaptics Incorporated is engaged in the development, marketing and sale of intuitive human interface solutions for electronic devices and products. The Company is a developer and supplier of custom-designed human interface product solutions that enable people to interact with a range of mobile computing, communications, entertainment and other electronic devices. Its products include ClearPad, ClearView, TouchView, Natural ID, TouchPad, SecurePad, ClickPad and ForcePad. Its other product solutions include dual pointing solutions, TouchStyk, and TouchButtons. Its dual pointing solutions offer TouchPad with a pointing stick in a single notebook computer, enabling users to select their interface of choice. TouchStyk is a self-contained pointing stick module that uses capacitive technology similar to that used in its TouchPad. TouchButtons provide capacitive buttons and scrolling controls for an interface solution designed to replace mechanical buttons.
About Knowles Corporation
Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.
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