TD SYNNEX (NYSE:SNX – Get Free Report) and Star Group (NYSE:SGU – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Risk and Volatility
TD SYNNEX has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Star Group has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.
Insider and Institutional Ownership
84.0% of TD SYNNEX shares are held by institutional investors. Comparatively, 40.4% of Star Group shares are held by institutional investors. 1.0% of TD SYNNEX shares are held by insiders. Comparatively, 20.4% of Star Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TD SYNNEX | 0 | 2 | 9 | 1 | 2.92 |
| Star Group | 0 | 1 | 0 | 0 | 2.00 |
TD SYNNEX currently has a consensus price target of $169.55, indicating a potential upside of 12.12%. Given TD SYNNEX’s stronger consensus rating and higher probable upside, equities analysts plainly believe TD SYNNEX is more favorable than Star Group.
Valuation & Earnings
This table compares TD SYNNEX and Star Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TD SYNNEX | $60.97 billion | 0.20 | $689.09 million | $9.22 | 16.40 |
| Star Group | $1.78 billion | 0.22 | $35.22 million | $1.32 | 8.86 |
TD SYNNEX has higher revenue and earnings than Star Group. Star Group 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
TD SYNNEX pays an annual dividend of $1.76 per share and has a dividend yield of 1.2%. Star Group pays an annual dividend of $0.74 per share and has a dividend yield of 6.3%. TD SYNNEX pays out 19.1% of its earnings in the form of a dividend. Star Group pays out 56.1% 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 raised its dividend for 5 consecutive years and Star Group has raised its dividend for 13 consecutive years. Star Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares TD SYNNEX and Star Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TD SYNNEX | 1.27% | 12.13% | 3.29% |
| Star Group | 3.77% | 21.24% | 6.79% |
Summary
TD SYNNEX beats Star Group on 11 of the 18 factors compared between the two stocks.
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.
About Star Group
Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2023, the company served approximately 402,200 full service residential and commercial home heating oil and propane customers and 52,400 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,600 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.
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