Critical Comparison: Synacor (NASDAQ:SYNC) and GAN (NASDAQ:GAN)


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Synacor (NASDAQ:SYNC) and GAN (NASDAQ:GAN) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Synacor and GAN, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synacor 0 2 0 0 2.00
GAN 0 0 4 0 3.00

Synacor currently has a consensus price target of $1.50, indicating a potential downside of 1.32%. GAN has a consensus price target of $27.25, indicating a potential upside of 18.43%. Given GAN’s stronger consensus rating and higher probable upside, analysts plainly believe GAN is more favorable than Synacor.

Insider and Institutional Ownership

27.1% of Synacor shares are held by institutional investors. Comparatively, 26.8% of GAN shares are held by institutional investors. 26.0% of Synacor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Synacor and GAN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synacor -12.38% -16.90% -9.12%
GAN -24.35% 0.61% 0.46%

Valuation and Earnings

This table compares Synacor and GAN’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synacor $121.85 million 0.49 -$9.02 million N/A N/A
GAN $29.97 million 28.12 $1.79 million N/A N/A

GAN has lower revenue, but higher earnings than Synacor.

Summary

GAN beats Synacor on 7 of the 11 factors compared between the two stocks.

Synacor Company Profile

Synacor, Inc., a digital technology company, provides email and collaboration software, cloud-based identity management platforms, managed web and mobile portals, and advertising solutions in the United States and internationally. It operates through two segments, Software & Services, and Portal & Advertising. The company, through its managed portals and advertising solutions, enables its customers to earn revenue by monetizing media among their consumers. It also provides Cloud ID Authentication, a cloud-based identity and access management platform for large enterprises that offers native single sign on, home-based authentication, and device management to reduce login friction and enhance security; Email/Collaboration services, which include white-label hosting, security, and migration; and paid content and premium services. The company serves video, internet, and communications providers; device manufactures; media companies; government entities; enterprises; financial institutions; and small and medium sized businesses. It markets its products through direct and indirect sales channels. The company was formerly known as CKMP, Inc. and changed its name to Synacor, Inc. in July 2001. Synacor, Inc. was founded in 1998 and is headquartered in Buffalo, New York.

GAN Company Profile

GAN Limited operates as a business-to-business supplier of internet gambling software-as-a-service solutions to online casino gaming and online sports betting applications in the United States. It offers and licenses GameSTACK, a proprietary internet gambling enterprise software system as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming, and virtual simulated gaming. The company also offer a range of professional and managed services designed to deploy and provide ongoing operational support for its software systems. It serves regional operators and individual tribal casino operators. The company was founded in 2002 and is based in Irvine, California.

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