Critical Contrast: HashiCorp (NASDAQ:HCP) vs. Synchronoss Technologies (NASDAQ:SNCR)

Synchronoss Technologies (NASDAQ:SNCR) and HashiCorp (NASDAQ:HCP) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

51.7% of Synchronoss Technologies shares are owned by institutional investors. Comparatively, 87.8% of HashiCorp shares are owned by institutional investors. 6.9% of Synchronoss Technologies shares are owned by company insiders. Comparatively, 22.5% of HashiCorp shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Synchronoss Technologies	-19.60%	10.93%	1.14%
HashiCorp	-32.70%	-15.58%	-11.55%

Volatility & Risk

Synchronoss Technologies has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, HashiCorp has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Synchronoss Technologies and HashiCorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchronoss Technologies	0	0	0	0	N/A
HashiCorp	0	10	4	0	2.29

HashiCorp has a consensus price target of $30.77, indicating a potential downside of 7.74%. Given HashiCorp’s higher probable upside, analysts clearly believe HashiCorp is more favorable than Synchronoss Technologies.

Earnings & Valuation

This table compares Synchronoss Technologies and HashiCorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchronoss Technologies	$164.20 million	0.69	-$54.53 million	($5.04)	-2.09
HashiCorp	$583.14 million	11.41	-$190.67 million	($0.98)	-34.03

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

Summary

HashiCorp beats Synchronoss Technologies on 7 of the 12 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 HashiCorp

HashiCorp, Inc. engages in the provision of multi-cloud infrastructure automation solutions worldwide. The company offers infrastructure provisioning products, including Terraform, that enables IT operations teams to apply an Infrastructure-as-Code approach, where processes and configuration required to support applications are codified and automated instead of being manual and ticket-based; Packer, that provides a consistent way to define the process of transforming the raw source inputs into a production worthy artifact, across any environment or packaging format; and Vagrant, that allows teams to define how development environments are set up. It also provides security products, such as Vault, a secrets management and data protection product, which enables security teams to apply policies based on application and user identity to govern access to credentials and secure sensitive data; and Boundary, that applies an identity-based approach to privileged access management and unifies the controls to a single system. In addition, the company offers Consul, an application-centric networking automation product that enables practitioners to manage application traffic, security teams to secure and restrict access between applications, and operations teams to automate the underlying network infrastructure; Nomad, a scheduler and workload orchestrator, which provides practitioners with a self-service interface to manage the application lifecycle; and Waypoint, an application delivery product that provides a developer-focused workflow for the build, deploy, and release process. Further, it provides HashiCorp Cloud Platform, a fully-managed cloud platform for multiple products to accelerate enterprise cloud migration by addressing resource and skills gaps, improving operational efficiency, and speeding up deployment time for customers. The company was incorporated in 2012 and is headquartered in San Francisco, California.