Synacor (NASDAQ:SYNC) and Its Rivals Financial Analysis

Synacor (NASDAQ: SYNC) is one of 186 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare Synacor to similar businesses based on the strength of its risk, dividends, profitability, valuation, earnings, institutional ownership and analyst recommendations.

Volatility & Risk

Synacor has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Synacor’s peers have a beta of 1.11, suggesting that their average stock price is 11% more volatile than the S&P 500.

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 -23.27% -276.67% -4.85%

Insider & Institutional Ownership

30.1% of Synacor shares are held by institutional investors. Comparatively, 63.3% of shares of all “IT Services & Consulting” companies are held by institutional investors. 21.9% of Synacor shares are held by insiders. Comparatively, 16.6% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synacor 0 2 3 0 2.60
Synacor Competitors 785 4767 7534 181 2.54

Synacor currently has a consensus price target of $5.00, suggesting a potential upside of 143.90%. As a group, “IT Services & Consulting” companies have a potential downside of 11.12%. Given Synacor’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Synacor is more favorable than its peers.

Valuation & Earnings

This table compares Synacor and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Synacor $127.37 million -$10.74 million -5.13
Synacor Competitors $2.81 billion $290.97 million 329.35

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.

Summary

Synacor peers beat Synacor on 7 of the 13 factors compared.

Synacor Company Profile

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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