Critical Review: Synchronoss Technologies (NASDAQ:SNCR) vs. Temenos Group (OTCMKTS:TMSNY)

Synchronoss Technologies (NASDAQ:SNCR) and Temenos Group (OTCMKTS:TMSNY) are both 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.

Institutional & Insider Ownership

51.7% of Synchronoss Technologies shares are held by institutional investors. 19.9% of Synchronoss Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Synchronoss Technologies and Temenos Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synchronoss Technologies	-5.69%	24.44%	3.59%
Temenos Group	17.50%	55.57%	10.62%

Risk and Volatility

Synchronoss Technologies has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Temenos Group has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Synchronoss Technologies and Temenos Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchronoss Technologies	1	2	0	0	1.67
Temenos Group	0	2	0	2	3.00

Valuation and Earnings

This table compares Synchronoss Technologies and Temenos Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchronoss Technologies	$170.91 million	0.61	$6.17 million	($1.02)	-8.82
Temenos Group	$1.09 billion	5.04	$280.61 million	$2.83	28.33

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

Summary

Temenos Group beats Synchronoss Technologies on 10 of the 13 factors compared between the two stocks.

About Synchronoss Technologies

Synchronoss Technologies, Inc. provides cloud, messaging, digital, and network management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Synchronoss Personal Cloud platform that allows customers' subscribers to backup and protect, engage with, and manage their personal content. It also provides Synchronoss' Messaging platform comprising advanced messaging platform and email suites; and OnboardX products, including mobile content transfer solution that offers wireless transfer of content from one mobile smart device to another in a carrier retail location or at home/work, etc., as well as out of box experience solution, a device setup solution that assists customers in setting up the features of new device, such as Wi-Fi, email, social network accounts and voicemail, prompting restoration of content, and enrollment in a cloud service. In addition, the company provides NetworkX products comprising spatialNX, an enterprise-wide access to network information, including physical location, specifications, attributes, connectivity, and capacity for every plant asset; ConnectNX, a system that eliminates manual handling of service orders and manages the full order lifecycle between customer and supplier through automation and rules-based validation; and ExpenseNX, a financial analytics platform. Further, it offers professional services, such as consulting, installation and deployment, configuration, systems integration, and support services; and software development and customization services. The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was incorporated in 2000 and is headquartered in Bridgewater, New Jersey.

About Temenos Group

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.