Head-To-Head Contrast: Synaptics (NASDAQ:SYNA) and ON Semiconductor (NASDAQ:ON)

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

Analyst Ratings

This is a summary of recent ratings for Synaptics and ON Semiconductor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 0 2 12 0 2.86
ON Semiconductor 1 4 20 0 2.76

Synaptics currently has a consensus target price of $186.25, suggesting a potential upside of 1.33%. ON Semiconductor has a consensus target price of $48.55, suggesting a potential upside of 1.46%. Given ON Semiconductor’s higher possible upside, analysts plainly believe ON Semiconductor is more favorable than Synaptics.

Insider and Institutional Ownership

92.5% of Synaptics shares are owned by institutional investors. Comparatively, 91.2% of ON Semiconductor shares are owned by institutional investors. 0.9% of Synaptics shares are owned by company insiders. Comparatively, 1.4% of ON Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synaptics $1.34 billion 5.36 $79.60 million $6.34 28.99
ON Semiconductor $5.26 billion 3.92 $234.20 million $0.85 56.29

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

Profitability

This table compares Synaptics and ON Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synaptics 5.94% 25.78% 11.72%
ON Semiconductor 8.85% 18.98% 7.81%

Risk and Volatility

Synaptics has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, ON Semiconductor has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500.

Synaptics Company Profile

Synaptics, Inc. engages in the development, marketing, and sale of human interface semiconductor solutions for electronic devices and products. It specializes in custom-designed human interface that enable people to interact with mobile computing, communications, entertainment, and other electronic devices. The company was founded by Federico Faggin and Carver A. Mead in March 1986 and is headquartered in San Jose, CA.

ON Semiconductor Company Profile

ON Semiconductor Corp. engages in the design, manufacture, and marketing of portfolio of semiconductor components. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment designs and develops analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment includes designs and develops CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, including SiPM and SPAD arrays, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the automotive, industrial, consumer, wireless, medical and aerospace/defense markets. The company was fou

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