Reviewing TD SYNNEX (SNX) & Its Rivals

TD SYNNEX (NYSE:SNX) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its peers? We will compare TD SYNNEX to related companies based on the strength of its risk, profitability, earnings, institutional ownership, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations for TD SYNNEX and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TD SYNNEX	0	1	7	1	3.00
TD SYNNEX Competitors	2049	7618	10451	665	2.47

TD SYNNEX currently has a consensus target price of $331.14, suggesting a potential upside of 51.22%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 39.70%. Given TD SYNNEX’s stronger consensus rating and higher possible upside, equities analysts plainly believe TD SYNNEX is more favorable than its peers.

Insider & Institutional Ownership

84.0% of TD SYNNEX shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 0.7% of TD SYNNEX shares are owned by company insiders. Comparatively, 16.0% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

TD SYNNEX has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, TD SYNNEX’s peers have a beta of -0.29, indicating that their average share price is 129% less volatile than the S&P 500.

Dividends

TD SYNNEX pays an annual dividend of $1.92 per share and has a dividend yield of 0.9%. TD SYNNEX pays out 11.7% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 2.0% and pay out 69.2% of their earnings in the form of a dividend. TD SYNNEX has raised its dividend for 5 consecutive years.

Earnings & Valuation

This table compares TD SYNNEX and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TD SYNNEX	$62.51 billion	$827.66 million	13.34
TD SYNNEX Competitors	$114.97 billion	$172.92 million	4.72

TD SYNNEX’s peers have higher revenue, but lower earnings than TD SYNNEX. TD SYNNEX is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares TD SYNNEX and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TD SYNNEX	1.75%	16.78%	3.98%
TD SYNNEX Competitors	-141.19%	-31.04%	-7.22%

Summary

TD SYNNEX beats its peers on 12 of the 15 factors compared.

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.