Critical Contrast: Resonant (RESN) & Synaptics (SYNA)

Resonant (NASDAQ: RESN) and Synaptics (NASDAQ:SYNA) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Resonant -3,436.54% -98.33% -87.40%
Synaptics -6.28% 11.99% 6.11%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Resonant and Synaptics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Resonant 0 0 6 0 3.00
Synaptics 2 5 6 0 2.31

Resonant currently has a consensus target price of $9.40, indicating a potential upside of 66.67%. Synaptics has a consensus target price of $48.64, indicating a potential downside of 3.44%. Given Resonant’s stronger consensus rating and higher probable upside, research analysts plainly believe Resonant is more favorable than Synaptics.

Institutional & Insider Ownership

10.0% of Resonant shares are held by institutional investors. 22.3% of Resonant shares are held by company insiders. Comparatively, 3.7% of Synaptics shares are held by company 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.

Risk & Volatility

Resonant has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares Resonant and Synaptics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Resonant $650,000.00 231.24 -$21.65 million ($1.26) -4.48
Synaptics $1.72 billion 1.01 $48.80 million $3.32 15.17

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

Summary

Synaptics beats Resonant on 7 of the 13 factors compared between the two stocks.

Resonant Company Profile

Resonant Inc., a late-stage development company, engages in the development of filter designs for radio frequency (RF) front-ends used in the mobile device industry in the United States. It uses Infinite Synthesized Networks technology to configure and connect resonators, the building blocks of RF filters. The company develops a series of single-band designs for frequency bands; and multiplexer filter designs for two or more bands to address the carrier aggregation, as well as filter designs to replace various filters and associated componentry for various bands. Resonant Inc. was founded in 2012 and is headquartered in Goleta, California.

Synaptics Company Profile

Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. The company offers its human interface products solutions for mobile product applications, including smartphones, tablets, and touchscreen applications, as well as mobile, handheld, wireless, and entertainment devices; notebook applications; and other personal computer (PC) product applications, such as keyboards, mice, and desktop product applications. Its products include ClearPad, which enables users to interact directly with the display on smartphones and tablets; ClearView products that provide advanced image processing and low power technology for entry-level smartphones; TouchView products, which integrate touch and display technologies to deliver performance and simplified design; and Natural ID, a fingerprint ID product that is used in smartphones, tablets, notebook PCs, PC peripherals, and other applications. The company's products also comprise 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 to the TouchPad solution; and ForcePad, a thinner version of its ClickPad. In addition, its other product solutions include dual pointing solutions, which offer 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; and TouchButtons, which provides capacitive buttons and scrolling controls, as well as display interface products. The company sells its products through direct sales, outside sales representatives, distributors, and resellers. It serves smartphone, tablet, and PC original equipment manufacturers, as well as various consumer electronics manufacturers. The company was founded in 1986 and is headquartered in San Jose, California.

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