Sigma Lithium (NASDAQ:SGML) and TD SYNNEX (NYSE:SNX) Critical Comparison

TD SYNNEX (NYSE:SNX) and Sigma Lithium (NASDAQ:SGML) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Risk and Volatility

TD SYNNEX has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500.

Institutional & Insider Ownership

84.0% of TD SYNNEX shares are held by institutional investors. Comparatively, 64.9% of Sigma Lithium shares are held by institutional investors. 1.0% of TD SYNNEX shares are held by insiders. Comparatively, 48.6% of Sigma Lithium shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares TD SYNNEX and Sigma Lithium’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%
Sigma Lithium	-24.13%	-35.97%	-9.94%

Analyst Ratings

This is a breakdown of recent ratings and price targets for TD SYNNEX and Sigma Lithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TD SYNNEX	0	2	9	1	2.92
Sigma Lithium	1	2	0	0	1.67

TD SYNNEX currently has a consensus price target of $169.55, indicating a potential upside of 9.49%. Sigma Lithium has a consensus price target of $7.00, indicating a potential downside of 25.77%. Given TD SYNNEX’s stronger consensus rating and higher probable upside, equities analysts clearly believe TD SYNNEX is more favorable than Sigma Lithium.

Earnings and Valuation

This table compares TD SYNNEX and Sigma Lithium”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TD SYNNEX	$58.45 billion	0.22	$689.09 million	$9.22	16.79
Sigma Lithium	$152.36 million	6.89	-$51.07 million	($0.31)	-30.42

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

Summary

TD SYNNEX beats Sigma Lithium on 13 of the 15 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 Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.