Reviewing SYNNEX (SNX) & Wayside Technology Group (WSTG)
SYNNEX (NYSE:SNX) and Wayside Technology Group (NASDAQ:WSTG) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Insider and Institutional Ownership
71.7% of SYNNEX shares are held by institutional investors. Comparatively, 48.1% of Wayside Technology Group shares are held by institutional investors. 3.2% of SYNNEX shares are held by company insiders. Comparatively, 12.9% of Wayside Technology Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
SYNNEX pays an annual dividend of $1.40 per share and has a dividend yield of 1.8%. Wayside Technology Group pays an annual dividend of $0.68 per share and has a dividend yield of 5.7%. SYNNEX pays out 15.8% of its earnings in the form of a dividend. SYNNEX has increased its dividend for 2 consecutive years.
Earnings & Valuation
This table compares SYNNEX and Wayside Technology Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SYNNEX||$17.05 billion||0.23||$301.17 million||$8.86||8.75|
|Wayside Technology Group||$449.38 million||0.12||$5.06 million||N/A||N/A|
SYNNEX has higher revenue and earnings than Wayside Technology Group.
Volatility and Risk
SYNNEX has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Wayside Technology Group has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.
This is a summary of current ratings and price targets for SYNNEX and Wayside Technology Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wayside Technology Group||0||0||0||0||N/A|
SYNNEX presently has a consensus price target of $131.50, indicating a potential upside of 69.63%. Given SYNNEX’s higher probable upside, research analysts plainly believe SYNNEX is more favorable than Wayside Technology Group.
This table compares SYNNEX and Wayside Technology Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wayside Technology Group||1.13%||14.10%||5.38%|
SYNNEX beats Wayside Technology Group on 11 of the 16 factors compared between the two stocks.
SYNNEX Corporation provides business process services in North and South America, the Asia-Pacific, Europe, and internationally. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment distributes peripherals; information technology systems, including data center server and storage solutions; system components; software; networking/communications/security equipment; consumer electronics; and complementary products. It also provides systems design and integration solutions, build-to-order, and configure-to-order assembly capabilities; logistics services that include outsourced fulfillment, virtual distribution, and direct ship to end-users; online services; and financing services comprising net terms, third party leasing, floor plan financing, and letters of credit backed financing and arrangements. In addition, this segment offers marketing services, such as direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, trade shows, trade groups, database analysis, print on demand services, and Web-based marketing. This segment serves resellers, system integrators, and retailers. The Concentrix segment offers a portfolio of strategic solutions and end-to-end business services focused on customer engagement strategy, process optimization, technology innovation, front and back-office automation, and business transformation services. This segment serves clients in various industry verticals, including automotive, banking and financial services, consumer electronics, energy and public sector, healthcare, insurance, media and communications, retail and e-commerce, and technology, as well as travel, transportation, and tourism. The company was formerly known as SYNNEX Information Technologies, Inc. and changed its name to SYNNEX Corporation in October 2003. SYNNEX Corporation was founded in 1980 and is headquartered in Fremont, California.
About Wayside Technology Group
Wayside Technology Group, Inc. operates as an information technology channel company worldwide. It operates in two segments, Lifeboat Distribution and TechXtend. The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators; and software, hardware, and services for corporations, government organizations, and academic institutions. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers in the United States and Canada. In addition, the company offers a line of products from various publishers of software; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. Wayside Technology Group, Inc. markets its products through own Websites, local and online seminars, Webinars, and social media, as well as direct email and printed materials. The company was formerly known as Programmer's Paradise, Inc. and changed its name to Wayside Technology Group, Inc. in August 2006. Wayside Technology Group, Inc. was founded in 1982 and is headquartered in Eatontown, New Jersey.
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