Contrasting Synacor (SYNC) & Its Rivals

Synacor (NASDAQ: SYNC) is one of 183 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Synacor to related companies based on the strength of its valuation, institutional ownership, earnings, profitability, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a summary of current recommendations for Synacor and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synacor 0 2 3 0 2.60
Synacor Competitors 730 4671 7401 169 2.54

Synacor currently has a consensus price target of $5.00, indicating a potential upside of 100.00%. As a group, “IT Services & Consulting” companies have a potential upside of 3.93%. Given Synacor’s stronger consensus rating and higher probable upside, equities analysts plainly believe Synacor is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Synacor -9.87% -31.12% -15.09%
Synacor Competitors -19.54% -273.63% -4.16%

Insider and Institutional Ownership

30.1% of Synacor shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 21.9% of Synacor shares are held by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by 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 Synacor and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Synacor $127.37 million -$10.74 million -6.25
Synacor Competitors $2.79 billion $289.83 million 361.28

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

Volatility and Risk

Synacor has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Synacor’s peers have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.

About Synacor

Synacor, Inc. is a technology development, multiplatform services and revenue partner for video, Internet and communications providers, device manufacturers and enterprises. The Company enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, actionable data and implementation. Through its Managed Portals and Advertising solutions, the Company enables its customers to earn revenue by monetizing media among their consumers. Its Managed Portals are delivered across devices and under its customers’ own brand names. The Company delivers content, such as top news, entertainment, and long- and short-form video and applications, on its Managed Portals. In addition, consumers have the ability through portals to manage their e-mail and messaging, pay bills, receive special promotions and perform other account management needs.

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