Head-To-Head Contrast: Synaptics (NASDAQ:SYNA) vs. Fusion-IO (FIO)

Fusion-IO (NYSE: FIO) and Synaptics (NASDAQ:SYNA) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Insider and Institutional Ownership

97.7% of Synaptics shares are held by institutional investors. 3.7% of Synaptics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Fusion-IO and Synaptics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion-IO 0 0 0 0 N/A
Synaptics 5 6 6 0 2.06

Synaptics has a consensus target price of $47.53, suggesting a potential upside of 34.27%.

Profitability

This table compares Fusion-IO and Synaptics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fusion-IO -30.49% -26.35% -20.81%
Synaptics 1.06% 15.85% 8.73%

Valuation and Earnings

This table compares Fusion-IO and Synaptics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fusion-IO N/A N/A N/A ($1.01) N/A
Synaptics $1.72 billion 0.70 $48.80 million $0.49 72.25

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

Summary

Synaptics beats Fusion-IO on 8 of the 8 factors compared between the two stocks.

Fusion-IO Company Profile

Fusion-io, Inc. provides solutions for enterprises, hyperscale datacenters, and small to medium enterprises (SMEs), that accelerates databases, virtualization, mission-critical applications, cloud computing, big data, and information systems. Its hardware and software platforms and solutions enable the acceleration of data and applications. It sells its solutions through a global direct sales force, original equipment manufacturers. The Company’s portfolio of storage memory products packages ioMemory hardware combined with its VSL software into a family of products suitable for direct, shared, and cached acceleration environments. Direct acceleration is provided by its ioDrive, ioScale, and ioFX enterprise grade PCIe-products that leverage flash and are placed in x86 servers or workstations to directly accelerate locally hosted applications. Its shared acceleration is provided by its ION Data Accelerator or ioControl software combined with ioMemory, VSL, and industry-standard servers.

Synaptics Company Profile

Synaptics Incorporated is engaged in the development, marketing and sale of intuitive human interface solutions for electronic devices and products. The Company is a developer and supplier of custom-designed human interface product solutions that enable people to interact with a range of mobile computing, communications, entertainment and other electronic devices. Its products include ClearPad, ClearView, TouchView, Natural ID, TouchPad, SecurePad, ClickPad and ForcePad. Its other product solutions include dual pointing solutions, TouchStyk, and TouchButtons. Its dual pointing solutions offer TouchPad with a pointing stick in a single notebook computer, enabling users to select their interface of choice. TouchStyk is a self-contained pointing stick module that uses capacitive technology similar to that used in its TouchPad. TouchButtons provide capacitive buttons and scrolling controls for an interface solution designed to replace mechanical buttons.

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