Head to Head Review: Brother Industries (OTCMKTS:BRTHY) vs. TD SYNNEX (NYSE:SNX)

Brother Industries (OTCMKTS:BRTHY) and TD SYNNEX (NYSE:SNX) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Earnings and Valuation

This table compares Brother Industries and TD SYNNEX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brother Industries	$5.94 billion	1.03	$446.33 million	$2.88	16.96
TD SYNNEX	$62.51 billion	0.32	$827.66 million	$13.97	17.84

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

Dividends

Brother Industries pays an annual dividend of $0.85 per share and has a dividend yield of 1.7%. TD SYNNEX pays an annual dividend of $1.92 per share and has a dividend yield of 0.8%. Brother Industries pays out 29.5% of its earnings in the form of a dividend. TD SYNNEX pays out 13.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TD SYNNEX has increased its dividend for 5 consecutive years.

Risk & Volatility

Brother Industries has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, TD SYNNEX has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Brother Industries and TD SYNNEX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brother Industries	0	1	0	0	2.00
TD SYNNEX	0	1	8	1	3.00

TD SYNNEX has a consensus price target of $294.67, indicating a potential upside of 18.26%. Given TD SYNNEX’s stronger consensus rating and higher probable upside, analysts plainly believe TD SYNNEX is more favorable than Brother Industries.

Institutional & Insider Ownership

84.0% of TD SYNNEX shares are held by institutional investors. 0.7% of TD SYNNEX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Brother Industries and TD SYNNEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brother Industries	N/A	N/A	N/A
TD SYNNEX	1.63%	15.37%	3.82%

Summary

TD SYNNEX beats Brother Industries on 16 of the 18 factors compared between the two stocks.

About Brother Industries

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.

About TD SYNNEX

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.