Comparing ASML (NASDAQ:ASML) & Synaptics (NASDAQ:SYNA)

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

Risk and Volatility

ASML has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ASML	30.11%	52.71%	22.10%
Synaptics	-41.00%	4.37%	2.27%

Insider and Institutional Ownership

26.1% of ASML shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 0.7% of Synaptics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares ASML and Synaptics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASML	$36.95 billion	18.37	$10.87 billion	$32.14	53.69
Synaptics	$1.20 billion	3.25	-$490.80 million	($12.65)	-7.76

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

Analyst Recommendations

This is a summary of recent ratings and target prices for ASML and Synaptics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASML	3	5	19	3	2.73
Synaptics	1	9	3	1	2.29

ASML presently has a consensus price target of $1,970.33, indicating a potential upside of 14.18%. Synaptics has a consensus price target of $123.91, indicating a potential upside of 26.25%. Given Synaptics’ higher probable upside, analysts plainly believe Synaptics is more favorable than ASML.

Summary

ASML beats Synaptics on 11 of the 15 factors compared between the two stocks.

About ASML

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.

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.