TransAct Technologies (NASDAQ: TACT) and Synnex Corporation (NYSE:SNX) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitabiliy and institutional ownership.
Profitability
This table compares TransAct Technologies and Synnex Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TransAct Technologies | 6.92% | 16.37% | 12.45% |
| Synnex Corporation | 1.86% | 16.29% | 6.35% |
Risk and Volatility
TransAct Technologies has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Synnex Corporation has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Insider and Institutional Ownership
36.7% of TransAct Technologies shares are owned by institutional investors. Comparatively, 71.7% of Synnex Corporation shares are owned by institutional investors. 11.6% of TransAct Technologies shares are owned by insiders. Comparatively, 3.2% of Synnex Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
TransAct Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 4.1%. Synnex Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. TransAct Technologies pays out 67.9% of its earnings in the form of a dividend. Synnex Corporation pays out 14.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation and Earnings
This table compares TransAct Technologies and Synnex Corporation’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| TransAct Technologies | $56.88 million | 1.14 | $6.97 million | $0.53 | 16.70 |
| Synnex Corporation | $15.01 billion | 0.32 | $603.29 million | $6.97 | 17.19 |
Synnex Corporation has higher revenue and earnings than TransAct Technologies. TransAct Technologies is trading at a lower price-to-earnings ratio than Synnex Corporation, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for TransAct Technologies and Synnex Corporation, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TransAct Technologies | 0 | 0 | 1 | 0 | 3.00 |
| Synnex Corporation | 0 | 2 | 2 | 1 | 2.80 |
TransAct Technologies presently has a consensus price target of $11.00, indicating a potential upside of 24.29%. Synnex Corporation has a consensus price target of $129.25, indicating a potential upside of 7.87%. Given TransAct Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe TransAct Technologies is more favorable than Synnex Corporation.
Summary
TransAct Technologies beats Synnex Corporation on 9 of the 17 factors compared between the two stocks.
TransAct Technologies Company Profile
TransAct Technologies Incorporated (TransAct) designs, develops and sells market-specific solutions, including printers, terminals, software and other products for transaction-based and other industries. The Company operates through the segment, which includes design, development, assembly and marketing of transaction printers and terminals, and providing printer and terminal related software, services, supplies and spare parts. Its thermal, inkjet and impact printers and terminals generate labels and transaction records, such as receipts, tickets, coupons, register journals and other documents, as well as printed logging, and plotting of oil field and well drilling data. Its products are sold under the AccuDate, Ithaca, RESPONDER, Epic, EPICENTRAL and Printrex brand names. It focuses on various markets, such as food safety, banking and point-of-sale (POS), casino and gaming, lottery and Printrex, Inc. (Printrex), which serves the oil and gas, medical and mobile printing markets.
Synnex Corporation Company Profile
Synnex Corporation is a business process services company. The Company provides a range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement strategy. The Company operates in two segments: Technology Solutions and Concentrix. The Company’s Technology Solutions segment distributes peripherals, information technology (IT) systems, including data center server and storage solutions, system components, software, networking/communications/security equipment, and consumer electronics (CE) and complementary products. Within its Technology Solutions segment, the Company also provides systems design and integration solutions. The Company’s Concentrix segment offers a portfolio of solutions and end-to-end business services focused on customer engagement strategy, process optimization, technology innovation, front and back-office automation and business transformation.
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