Critical Analysis: Synacor (SYNC) and Carbonite (CARB)
Synacor (NASDAQ: SYNC) and Carbonite (NASDAQ:CARB) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Volatility and Risk
Synacor has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Carbonite has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.
Insider and Institutional Ownership
16.2% of Synacor shares are held by institutional investors. Comparatively, 93.7% of Carbonite shares are held by institutional investors. 21.9% of Synacor shares are held by company insiders. Comparatively, 12.2% of Carbonite shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Synacor and Carbonite’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Synacor and Carbonite, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Synacor currently has a consensus target price of $5.25, indicating a potential upside of 114.29%. Carbonite has a consensus target price of $25.60, indicating a potential upside of 20.47%. Given Synacor’s higher possible upside, research analysts clearly believe Synacor is more favorable than Carbonite.
Valuation & Earnings
This table compares Synacor and Carbonite’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Synacor||$123.65 million||0.75||-$4.28 million||($0.51)||-4.80|
|Carbonite||$221.57 million||2.67||$6.83 million||$0.02||1,062.50|
Carbonite has higher revenue and earnings than Synacor. Synacor is trading at a lower price-to-earnings ratio than Carbonite, indicating that it is currently the more affordable of the two stocks.
Carbonite beats Synacor on 9 of the 12 factors compared between the two stocks.
Synacor Company Profile
Synacor, Inc. is a technology development, multiplatform services and revenue partner for video, Internet and communications providers, device manufacturers and enterprises. The Company enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, actionable data and implementation. Through its Managed Portals and Advertising solutions, the Company enables its customers to earn revenue by monetizing media among their consumers. Its Managed Portals are delivered across devices and under its customers’ own brand names. The Company delivers content, such as top news, entertainment, and long- and short-form video and applications, on its Managed Portals. In addition, consumers have the ability through portals to manage their e-mail and messaging, pay bills, receive special promotions and perform other account management needs.
Carbonite Company Profile
Carbonite, Inc. provides data protection solutions, including cloud, hybrid and on-premise backup and restore, disaster recovery as a service (DRaaS) and e-mail archiving. The Company’s solutions provide enterprise-grade data protection and recovery capabilities to its customers. The Company’s small and medium-sized businesses (SMBs) plans include Carbonite Computer Backup; Carbonite Server Backup, such as Carbonite Office Power and Carbonite Office Ultimate; EVault Cloud Backup; DRaaS, and e-mail archiving. Carbonite Computer Backup enables users to automatically back up files directly to the cloud. Carbonite Server Backup provides cloud and hybrid backup for physical and virtual servers with management capabilities, including scheduling, retention, bandwidth and compression settings, and monitoring and reporting via a personalized server dashboard. Its e-mail archiving solutions include MailStore Server, MailStore Service Provider Edition and MailStore Home.
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