Synacor (NYSE: LN) and Line (NYSE:LN) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

26.5% of Synacor shares are owned by institutional investors. Comparatively, 3.1% of Line shares are owned by institutional investors. 18.6% of Synacor shares are owned by 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.

Profitability

This table compares Synacor and Line’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synacor -3.18% -11.18% -6.10%
Line 0.36% 0.06% 0.04%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Synacor and Line, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synacor 0 1 0 0 2.00
Line 3 0 5 0 2.25

Synacor presently has a consensus price target of $5.00, suggesting a potential upside of 163.16%. Given Synacor’s higher probable upside, research analysts plainly believe Synacor is more favorable than Line.

Valuation & Earnings

This table compares Synacor and Line’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synacor $140.03 million 0.53 -$9.77 million ($0.27) -7.04
Line $1.60 billion 6.17 $71.89 million $0.30 137.87

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

Volatility & Risk

Synacor has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Line has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Summary

Line beats Synacor on 11 of the 14 factors compared between the two stocks.

Synacor Company Profile

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.

Line Company Profile

LINE Corporation provides a platform for mobile messaging and communication services, content distribution, and related services primarily in Japan, Taiwan, Thailand, Indonesia, and Hong Kong. The company offers LINE, a cross-platform messenger application that enable users to communicate through free instant messaging, stickers, and voice and video calls, as well as serves as a smart portal to its other applications and services. It also provides communication and content sales, and advertising services through the LINE platform; and advertising services through LINE advertising, and livedoor and NAVER Matome Web portals. The company was formerly known as NHN Japan Corporation and changed its name to LINE Corporation in April 2013. The company was founded in 2000 and is headquartered in Tokyo, Japan. LINE Corporation is a subsidiary of Naver Corporation.

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