Synaptics (NASDAQ: SYNA) and Silicon Graphics International Corp (NASDAQ:SGI) 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, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Synaptics and Silicon Graphics International Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Synaptics $1.72 billion 0.74 $174.50 million $1.38 27.52
Silicon Graphics International Corp N/A N/A N/A ($0.32) -24.22

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

Profitability

This table compares Synaptics and Silicon Graphics International Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synaptics 2.84% 16.51% 9.36%
Silicon Graphics International Corp 0.11% 0.98% 0.15%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Synaptics and Silicon Graphics International Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 5 3 8 0 2.19
Silicon Graphics International Corp 0 0 1 0 3.00

Synaptics currently has a consensus target price of $54.43, indicating a potential upside of 43.31%. Silicon Graphics International Corp has a consensus target price of $1.60, indicating a potential downside of 79.35%. Given Synaptics’ higher probable upside, analysts clearly believe Synaptics is more favorable than Silicon Graphics International Corp.

Institutional and Insider Ownership

97.7% of Synaptics shares are held by institutional investors. Comparatively, 80.9% of Silicon Graphics International Corp shares are held by institutional investors. 3.7% of Synaptics shares are held by company insiders. Comparatively, 3.9% of Silicon Graphics International Corp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Synaptics has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Silicon Graphics International Corp has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.

Summary

Synaptics beats Silicon Graphics International Corp on 8 of the 11 factors compared between the two stocks.

About Synaptics

Synaptics Incorporated is engaged in the development, marketing and sale of intuitive human interface solutions for electronic devices and products. The Company is a developer and supplier of custom-designed human interface product solutions that enable people to interact with a range of mobile computing, communications, entertainment and other electronic devices. Its products include ClearPad, ClearView, TouchView, Natural ID, TouchPad, SecurePad, ClickPad and ForcePad. Its other product solutions include dual pointing solutions, TouchStyk, and TouchButtons. Its dual pointing solutions offer TouchPad with a pointing stick in a single notebook computer, enabling users to select their interface of choice. TouchStyk is a self-contained pointing stick module that uses capacitive technology similar to that used in its TouchPad. TouchButtons provide capacitive buttons and scrolling controls for an interface solution designed to replace mechanical buttons.

About Silicon Graphics International Corp

Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.

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