SYNNEX (SNX) & Speed Commerce (SPDC) Critical Review

SYNNEX (NYSE:SNX) and Speed Commerce (OTCMKTS:SPDC) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Volatility & Risk

SYNNEX has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Speed Commerce has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for SYNNEX and Speed Commerce, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SYNNEX 0 2 4 1 2.86
Speed Commerce 0 0 0 0 N/A

SYNNEX currently has a consensus price target of $131.50, indicating a potential upside of 66.58%. Given SYNNEX’s higher probable upside, analysts clearly believe SYNNEX is more favorable than Speed Commerce.

Profitability

This table compares SYNNEX and Speed Commerce’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SYNNEX 1.41% 17.16% 5.33%
Speed Commerce N/A N/A N/A

Dividends

SYNNEX pays an annual dividend of $1.40 per share and has a dividend yield of 1.8%. Speed Commerce does not pay a dividend. SYNNEX pays out 15.8% of its earnings in the form of a dividend. SYNNEX has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

71.7% of SYNNEX shares are owned by institutional investors. 3.2% of SYNNEX shares are owned by company insiders. Comparatively, 1.2% of Speed Commerce shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares SYNNEX and Speed Commerce’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SYNNEX $17.05 billion 0.24 $301.17 million $8.86 8.91
Speed Commerce N/A N/A N/A N/A N/A

SYNNEX has higher revenue and earnings than Speed Commerce.

Summary

SYNNEX beats Speed Commerce on 12 of the 13 factors compared between the two stocks.

About SYNNEX

SYNNEX Corporation provides business process services in North and South America, the Asia-Pacific, Europe, and internationally. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment distributes peripherals; information technology systems, including data center server and storage solutions; system components; software; networking/communications/security equipment; consumer electronics; and complementary products. It also provides systems design and integration solutions, build-to-order, and configure-to-order assembly capabilities; logistics services that include outsourced fulfillment, virtual distribution, and direct ship to end-users; online services; and financing services comprising net terms, third party leasing, floor plan financing, and letters of credit backed financing and arrangements. In addition, this segment offers marketing services, such as direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, trade shows, trade groups, database analysis, print on demand services, and Web-based marketing. This segment serves resellers, system integrators, and retailers. The Concentrix segment offers a portfolio of strategic solutions and end-to-end business services focused on customer engagement strategy, process optimization, technology innovation, front and back-office automation, and business transformation services. This segment serves clients in various industry verticals, including automotive, banking and financial services, consumer electronics, energy and public sector, healthcare, insurance, media and communications, retail and e-commerce, and technology, as well as travel, transportation, and tourism. The company was formerly known as SYNNEX Information Technologies, Inc. and changed its name to SYNNEX Corporation in October 2003. SYNNEX Corporation was founded in 1980 and is headquartered in Fremont, California.

About Speed Commerce

Speed Commerce, Inc. provides e-commerce and fulfillment services to retailers and manufacturers in the United States and Canada. It offers Web platform development and hosting, order management, fulfillment, logistics, and contact center services, which provide customers with transaction-based services and information management tools. The company was formerly known as Navarre Corporation and changed its name to Speed Commerce, Inc. in September 2013. The company was founded in 1983 and is headquartered in Richardson, Texas.

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