Analyzing TD SYNNEX (SNX) and Its Competitors

TD SYNNEX (NYSE:SNX) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it contrast to its competitors? We will compare TD SYNNEX to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Valuation & Earnings

This table compares TD SYNNEX and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TD SYNNEX	$62.51 billion	$827.66 million	13.91
TD SYNNEX Competitors	$4.00 billion	$172.92 million	6.13

TD SYNNEX has higher revenue and earnings than its competitors. TD SYNNEX is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

TD SYNNEX has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, TD SYNNEX’s competitors have a beta of -0.25, suggesting that their average share price is 125% less volatile than the S&P 500.

Profitability

This table compares TD SYNNEX and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TD SYNNEX	1.75%	16.78%	3.98%
TD SYNNEX Competitors	-158.14%	-25.87%	-6.85%

Dividends

TD SYNNEX pays an annual dividend of $1.92 per share and has a dividend yield of 0.8%. TD SYNNEX pays out 11.7% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 70.2% of their earnings in the form of a dividend. TD SYNNEX has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for TD SYNNEX and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TD SYNNEX	0	1	7	1	3.00
TD SYNNEX Competitors	2047	7598	10416	658	2.47

TD SYNNEX presently has a consensus target price of $331.14, suggesting a potential upside of 45.03%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 31.42%. Given TD SYNNEX’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TD SYNNEX is more favorable than its competitors.

Insider & Institutional Ownership

84.0% of TD SYNNEX shares are held by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 0.7% of TD SYNNEX shares are held by company insiders. Comparatively, 16.2% of shares of all “Electronic Equipment, Instruments & Components” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

TD SYNNEX beats its competitors on 13 of the 15 factors compared.

TD SYNNEX Company Profile

TD SYNNEX Corporation operates as a distributor and solutions aggregator for the information technology (IT) ecosystem. The company offers personal computing devices and peripherals, mobile phones and accessories, printers, supplies, and endpoint technology software; and data center technologies, such as hybrid cloud, security, storage, networking, servers, technology software, and converged and hyper-converged infrastructure, as well as computing components. It also provides systems design and rack integration, build-to-order, and configure-to-order assembly; and thermal testing, power-draw testing, burn-in, and quality and logistics support. In addition, the company offers outsourced fulfillment, virtual distribution, and direct ship to end-users; shipping documents generation, multi-level serial number tracking, and configured products and online order and shipment tracking, as well as turn-key logistics solutions. Further, it provides public cloud solutions in productivity and collaboration, IaaS, or Infrastructure as a Service, PaaS, or Platform as a Service, SaaS, or Software as a Service, security, mobility, IoT, and other hybrid solutions. Additionally, the company offers online services; provides net terms, third party leasing, floor plan financing, and letters-of-credit backed financing and arrangement; and leases products and provides device-as-a-service, as well as offers direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was founded in 1974 and is headquartered in Fremont, California.