Head-To-Head Contrast: Synaptics (SYNA) & Silicon Labs (SLAB)

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

Profitability

This table compares Synaptics and Silicon Labs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synaptics -5.04% 13.70% 7.21%
Silicon Labs 6.12% 11.11% 7.01%

Institutional & Insider Ownership

100.0% of Synaptics shares are held by institutional investors. Comparatively, 89.6% of Silicon Labs shares are held by institutional investors. 3.7% of Synaptics shares are held by company insiders. Comparatively, 2.0% of Silicon Labs shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 3 5 6 0 2.21
Silicon Labs 0 1 7 0 2.88

Synaptics presently has a consensus target price of $45.92, suggesting a potential upside of 0.41%. Silicon Labs has a consensus target price of $103.50, suggesting a potential upside of 15.13%. Given Silicon Labs’ stronger consensus rating and higher probable upside, analysts clearly believe Silicon Labs is more favorable than Synaptics.

Earnings & Valuation

This table compares Synaptics and Silicon Labs’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synaptics $1.72 billion 0.92 $48.80 million $3.32 13.77
Silicon Labs $768.87 million 5.05 $47.09 million $2.35 38.26

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

Volatility and Risk

Synaptics has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Silicon Labs has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

About Synaptics

Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. The company offers its human interface products solutions for mobile product applications, including smartphones, tablets, and touchscreen applications, as well as mobile, handheld, wireless, and entertainment devices; notebook applications; and other personal computer (PC) product applications, such as keyboards, mice, and desktop product applications. Its products include ClearPad, which enables users to interact directly with the display on smartphones and tablets; ClearView products that provide advanced image processing and low power technology for entry-level smartphones; TouchView products, which integrate touch and display technologies to deliver performance and simplified design; and Natural ID, a fingerprint ID product that is used in smartphones, tablets, notebook PCs, PC peripherals, and other applications. The company's products also comprise TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design to the TouchPad solution; and ForcePad, a thinner version of its ClickPad. In addition, its other product solutions include dual pointing solutions, which offer TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; and TouchButtons, which provides capacitive buttons and scrolling controls, as well as display interface products. The company sells its products through direct sales, outside sales representatives, distributors, and resellers. It serves smartphone, tablet, and PC original equipment manufacturers, as well as various consumer electronics manufacturers. The company was founded in 1986 and is headquartered in San Jose, California.

About Silicon Labs

Silicon Laboratories Inc., a fabless semiconductor company, designs, develops, and markets mixed-signal integrated circuits (ICs) in the United States, China, and internationally. The company offers Internet of things products, such as 8-bit mixed-signal, 32-bit wireless, and ultra-low-power 32-bit microcontrollers; wireless connectivity devices, including multiprotocol wireless Gecko system-on-chip devices; real-time operating systems; sensor products comprising optical, relative humidity/temperature, and hall effect magnetic sensors. It also provides broadcast products, which include single-chip hybrid TV tuners and analog TV demodulators, as well as AM/FM, HD radio, and DAB/DAB+ receivers; and radio ICs. In addition, the company offers infrastructure products, such as timing devices; and multi-channel isolators, isolated drivers, isolated power converters, and mixed-signal devices. Further, it provides access products, including ProSLIC subscriber line interface circuits for VoIP; ISOmodem embedded modems; and Power over Ethernet power source equipment and powered device ICs. The company primarily markets its products to Internet of Things, Internet infrastructure, industrial automation, consumer, and automotive markets through direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

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