Synaptics (NASDAQ:SYNA) & GlobalFoundries (NASDAQ:GFS) Critical Comparison

GlobalFoundries (NASDAQ:GFS) and Synaptics (NASDAQ:SYNA) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation & Earnings

This table compares GlobalFoundries and Synaptics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GlobalFoundries	$6.79 billion	2.67	-$265.00 million	($0.09)	-363.70
Synaptics	$1.11 billion	2.27	-$47.80 million	($1.16)	-55.60

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

Analyst Recommendations

This is a summary of recent ratings and target prices for GlobalFoundries and Synaptics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GlobalFoundries	2	9	5	0	2.19
Synaptics	1	1	7	1	2.80

GlobalFoundries presently has a consensus target price of $40.21, suggesting a potential upside of 22.86%. Synaptics has a consensus target price of $88.29, suggesting a potential upside of 36.88%. Given Synaptics’ stronger consensus rating and higher possible upside, analysts plainly believe Synaptics is more favorable than GlobalFoundries.

Volatility & Risk

GlobalFoundries has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Insider and Institutional Ownership

99.4% of Synaptics shares are owned by institutional investors. 0.5% of Synaptics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares GlobalFoundries and Synaptics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GlobalFoundries	-0.65%	6.73%	4.49%
Synaptics	-4.45%	4.32%	2.32%

Summary

Synaptics beats GlobalFoundries on 9 of the 15 factors compared between the two stocks.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.

About Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.