Reviewing Synaptics (NASDAQ:SYNA) & GlobalFoundries (NASDAQ:GFS)

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

Valuation & Earnings

This table compares Synaptics and GlobalFoundries”s top-line revenue, earnings per share (EPS) and valuation.

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

Synaptics has higher earnings, but lower revenue 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.

Volatility & Risk

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

Analyst Ratings

This is a breakdown of recent recommendations for Synaptics and GlobalFoundries, as provided by MarketBeat.com.

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

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

Profitability

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

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

Institutional and Insider Ownership

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

Summary

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

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.

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.