Synaptics (NASDAQ: SYNA) and QLogic (NASDAQ:QLGC) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Volatility and Risk

Synaptics has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, QLogic has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

97.7% of Synaptics shares are held by institutional investors. 3.6% of Synaptics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Synaptics and QLogic’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%
QLogic 15.71% 9.67% 8.76%

Analyst Recommendations

This is a summary of recent ratings and price targets for Synaptics and QLogic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 5 4 7 0 2.13
QLogic 0 0 0 0 N/A

Synaptics presently has a consensus price target of $54.43, suggesting a potential upside of 42.82%. Given Synaptics’ higher possible upside, equities research analysts clearly believe Synaptics is more favorable than QLogic.

Valuation and Earnings

This table compares Synaptics and QLogic’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Synaptics $1.72 billion 0.75 $174.50 million $1.38 27.62
QLogic N/A N/A N/A $0.75 21.43

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

Summary

Synaptics beats QLogic on 9 of the 10 factors compared between the two stocks.

Synaptics Company Profile

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.

QLogic Company Profile

QLogic Corporation (QLogic), designs and supplies server and storage networking connectivity products that provide and manage computer data communication. The Company’s products facilitate the transfer of data and enable resource sharing between servers, networks and storage. Its products are used in enterprise, managed service provider, consumer Web, and cloud service provider data centers. Its products are based primarily on Fiber Channel and Ethernet technologies and are used in connection with storage networks, data networks and converged networks. Storage networks are used to provide access to storage across enterprise environments. Fibre Channel is a technology for enterprise storage networking. Data networks are used to provide workstation-to-server, server-to-server, and server-to-storage connectivity using Ethernet. Converged networks are designed to address the data center by consolidating and unifying storage and data networks, using high-speed Ethernet.

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