Systemax (NYSE: SYX) and Tech Data Corporation (NASDAQ:TECD) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
Volatility and Risk
Systemax has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Tech Data Corporation has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Profitability
This table compares Systemax and Tech Data Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Systemax | -0.87% | 12.27% | 5.14% |
| Tech Data Corporation | 0.69% | 11.67% | 3.32% |
Valuation and Earnings
This table compares Systemax and Tech Data Corporation’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Systemax | $1.71 billion | 0.49 | $42.30 million | ($0.35) | -64.71 |
| Tech Data Corporation | $27.94 billion | 0.14 | $441.14 million | $5.38 | 19.02 |
Tech Data Corporation has higher revenue and earnings than Systemax. Systemax is trading at a lower price-to-earnings ratio than Tech Data Corporation, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Systemax and Tech Data Corporation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Systemax | 0 | 0 | 1 | 0 | 3.00 |
| Tech Data Corporation | 0 | 1 | 4 | 0 | 2.80 |
Systemax currently has a consensus target price of $31.00, indicating a potential upside of 36.87%. Tech Data Corporation has a consensus target price of $106.60, indicating a potential upside of 4.18%. Given Systemax’s stronger consensus rating and higher probable upside, analysts plainly believe Systemax is more favorable than Tech Data Corporation.
Dividends
Systemax pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Tech Data Corporation does not pay a dividend. Systemax pays out -114.3% of its earnings in the form of a dividend.
Institutional and Insider Ownership
24.5% of Systemax shares are owned by institutional investors. Comparatively, 96.1% of Tech Data Corporation shares are owned by institutional investors. 69.6% of Systemax shares are owned by company insiders. Comparatively, 1.6% of Tech Data Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Systemax beats Tech Data Corporation on 9 of the 16 factors compared between the two stocks.
Systemax Company Profile
Systemax Inc. is a direct marketer of brand name and private label products. The Company’s segments are Industrial Products Group (IPG), EMEA Technology Products Group (EMEA), and Corporate and Other (Corporate). The IPG segment sells an array of maintenance, repair and operational (MRO) products, which are marketed in North America. The Company offers a selection of products that are manufactured for its own design and marketed under the trademarks: Global, GlobalIndustrial.com, Nexel Relius, Paramount and Interion. EMEA sells products categorized as Information and Communications Technology (ICT) and Consumer Electronics (CE), as well as related technical services, such as configuration, implementation, network security, and other technical services. CE products include television and video; audio; cameras and surveillance; Global Positioning System (GPS); cell phones; video games, and home and electronics accessories.
Tech Data Corporation Company Profile
Tech Data Corporation is a wholesale distributor of technology products. The Company serves as a link in the technology supply chain by bringing products from the technology vendors to market, as well as providing its customers with logistics capabilities and services. It operates through the segment of distributing technology products, logistics management and other value-added services. It operates in two geographic segments: the Americas and Europe. It provides resellers training and technical support suite of electronic commerce tools customized shipping documents product configuration or integration services and access to financing programs. Its customers include value-added resellers, direct marketers, retailers and corporate resellers who support the diverse technology needs of end users. It sells its products to customers in approximately 100 countries throughout North America, South America, Europe, the Middle East and Africa.
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