Synchronoss Technologies (NASDAQ:SNCR) and Elastic (NYSE:ESTC) Financial Review

Elastic (NYSE:ESTC) and Synchronoss Technologies (NASDAQ:SNCR) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Risk and Volatility

Elastic has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Synchronoss Technologies has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Elastic and Synchronoss Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elastic	0	12	17	1	2.63
Synchronoss Technologies	1	1	0	0	1.50

Elastic presently has a consensus price target of $98.56, suggesting a potential downside of 0.29%. Given Elastic’s stronger consensus rating and higher probable upside, equities analysts clearly believe Elastic is more favorable than Synchronoss Technologies.

Earnings & Valuation

This table compares Elastic and Synchronoss Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elastic	$1.80 billion	5.76	$367.77 million	$3.57	27.69
Synchronoss Technologies	$170.91 million	0.61	$6.17 million	($1.02)	-8.82

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

Profitability

This table compares Elastic and Synchronoss Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elastic	20.84%	-0.35%	-0.14%
Synchronoss Technologies	-5.69%	24.44%	3.59%

Institutional and Insider Ownership

97.0% of Elastic shares are held by institutional investors. Comparatively, 51.7% of Synchronoss Technologies shares are held by institutional investors. 12.7% of Elastic shares are held by insiders. Comparatively, 19.9% of Synchronoss Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Elastic beats Synchronoss Technologies on 11 of the 15 factors compared between the two stocks.

About Elastic

Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data. The company's Elastic Stack product portfolio comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Elastic Agent that offers integrated host protection and central management services; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems from a multitude of sources simultaneously. It also provides software solutions on the Elastic Stack that address cases, including search applications, workplace search, logs, metrics, application performance monitoring, synthetic monitoring, security information and event management (SIEM), endpoint security, extended detection and response, and cloud security. The company was incorporated in 2012 and is based in Amsterdam, the Netherlands.

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.