Critical Contrast: Alphabet Inc Class A (GOOGL) and Synacor (SYNC)
Alphabet Inc Class A (NASDAQ: SYNC) and Synacor (NASDAQ:SYNC) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
This table compares Alphabet Inc Class A and Synacor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alphabet Inc Class A||13.16%||18.24%||14.32%|
This table compares Alphabet Inc Class A and Synacor’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alphabet Inc Class A||$110.86 billion||7.40||$12.66 billion||$32.05||36.77|
|Synacor||$140.03 million||0.51||-$9.77 million||($0.27)||-6.85|
Alphabet Inc Class A has higher revenue and earnings than Synacor. Synacor is trading at a lower price-to-earnings ratio than Alphabet Inc Class A, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Alphabet Inc Class A and Synacor, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alphabet Inc Class A||0||4||30||0||2.88|
Alphabet Inc Class A currently has a consensus price target of $1,324.02, suggesting a potential upside of 12.40%. Synacor has a consensus price target of $5.00, suggesting a potential upside of 170.27%. Given Synacor’s higher probable upside, analysts plainly believe Synacor is more favorable than Alphabet Inc Class A.
Risk and Volatility
Alphabet Inc Class A has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Synacor has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500.
Institutional & Insider Ownership
33.6% of Alphabet Inc Class A shares are owned by institutional investors. Comparatively, 26.5% of Synacor shares are owned by institutional investors. 13.2% of Alphabet Inc Class A shares are owned by company insiders. Comparatively, 18.6% of Synacor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Alphabet Inc Class A beats Synacor on 12 of the 14 factors compared between the two stocks.
About Alphabet Inc Class A
Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality. This segment also offers digital content, enterprise cloud services, and hardware products, as well as other miscellaneous products and services. The Other Bets segment includes businesses, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X, as well as fiber Internet and Television services. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.
Synacor, Inc. operates as a technology development, multiplatform services, and revenue partner for video, Internet, and communications providers; and device manufacturers, governments, and enterprises. It enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, and actionable data and implementation. The company, through its managed portals and advertising solutions, enables its customers to earn revenue by monetizing media among their consumers. It also offers recurring and fee-based revenue solutions, such as Cloud ID Authentication that offers home-based auto-authentication and social login, which enhances the consumer experience by reducing login failures; Email/Collaboration Services that include white-label hosting, security, and migration; and paid content and premium services. The company was formerly known as CKMP, Inc. and changed its name to Synacor, Inc. in July 2001. Synacor, Inc. was founded in 1998 and is headquartered in Buffalo, New York.
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