Head to Head Survey: Tokyo Electron (OTCMKTS:TOELY) and TD SYNNEX (NYSE:SNX)

TD SYNNEX (NYSE:SNX) and Tokyo Electron (OTCMKTS:TOELY) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Dividends

TD SYNNEX pays an annual dividend of $1.92 per share and has a dividend yield of 0.8%. Tokyo Electron pays an annual dividend of $1.21 per share and has a dividend yield of 0.8%. TD SYNNEX pays out 16.0% of its earnings in the form of a dividend. Tokyo Electron pays out 29.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TD SYNNEX has raised its dividend for 5 consecutive years. TD SYNNEX is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TD SYNNEX and Tokyo Electron, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TD SYNNEX	0	2	8	1	2.91
Tokyo Electron	0	1	0	0	2.00

TD SYNNEX currently has a consensus target price of $197.70, suggesting a potential downside of 15.82%. Given TD SYNNEX’s stronger consensus rating and higher possible upside, research analysts clearly believe TD SYNNEX is more favorable than Tokyo Electron.

Profitability

This table compares TD SYNNEX and Tokyo Electron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TD SYNNEX	1.52%	14.03%	3.63%
Tokyo Electron	23.40%	22.98%	17.30%

Earnings & Valuation

This table compares TD SYNNEX and Tokyo Electron”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TD SYNNEX	$62.51 billion	0.30	$827.66 million	$12.03	19.52
Tokyo Electron	$16.23 billion	9.27	$3.82 billion	$4.13	38.62

Tokyo Electron has lower revenue, but higher earnings than TD SYNNEX. TD SYNNEX is trading at a lower price-to-earnings ratio than Tokyo Electron, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

84.0% of TD SYNNEX shares are owned by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are owned by institutional investors. 0.7% of TD SYNNEX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

TD SYNNEX has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.

Summary

TD SYNNEX beats Tokyo Electron on 11 of the 18 factors compared between the two stocks.

About TD SYNNEX

TD SYNNEX Corporation operates as a distributor and solutions aggregator for the information technology (IT) ecosystem. The company offers personal computing devices and peripherals, mobile phones and accessories, printers, supplies, and endpoint technology software; and data center technologies, such as hybrid cloud, security, storage, networking, servers, technology software, and converged and hyper-converged infrastructure, as well as computing components. It also provides systems design and rack integration, build-to-order, and configure-to-order assembly; and thermal testing, power-draw testing, burn-in, and quality and logistics support. In addition, the company offers outsourced fulfillment, virtual distribution, and direct ship to end-users; shipping documents generation, multi-level serial number tracking, and configured products and online order and shipment tracking, as well as turn-key logistics solutions. Further, it provides public cloud solutions in productivity and collaboration, IaaS, or Infrastructure as a Service, PaaS, or Platform as a Service, SaaS, or Software as a Service, security, mobility, IoT, and other hybrid solutions. Additionally, the company offers online services; provides net terms, third party leasing, floor plan financing, and letters-of-credit backed financing and arrangement; and leases products and provides device-as-a-service, as well as offers direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was founded in 1974 and is headquartered in Fremont, California.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.