Comparing Synchronoss Technologies (NASDAQ:SNCR) & SAP (NYSE:SAP)

SAP (NYSE:SAP) and Synchronoss Technologies (NASDAQ:SNCR) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares SAP and Synchronoss Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SAP	20.88%	17.07%	10.61%
Synchronoss Technologies	-5.69%	24.44%	3.59%

Valuation and Earnings

This table compares SAP and Synchronoss Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SAP	$41.63 billion	6.34	$8.10 billion	$7.96	26.99
Synchronoss Technologies	$170.91 million	0.61	$6.17 million	($1.02)	-8.82

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

Risk & Volatility

SAP has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Synchronoss Technologies has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for SAP and Synchronoss Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SAP	0	7	13	1	2.71
Synchronoss Technologies	1	1	0	0	1.50

SAP presently has a consensus target price of $264.57, suggesting a potential upside of 23.14%. Given SAP’s stronger consensus rating and higher possible upside, analysts plainly believe SAP is more favorable than Synchronoss Technologies.

Insider & Institutional Ownership

51.7% of Synchronoss Technologies shares are held by institutional investors. 7.3% of SAP shares are held by insiders. Comparatively, 19.9% of Synchronoss Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

SAP beats Synchronoss Technologies on 11 of the 15 factors compared between the two stocks.

About SAP

SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; SAP's industry cloud solutions that provides modular solutions addressing industry-specific functions; Taulia solutions for working capital management to help enable customers mitigate the effects of inflation by providing visibility into working capital and access to liquidity; and sustainability solutions and services. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.

About Synchronoss Technologies

Synchronoss Technologies, Inc. provides cloud, messaging, digital, and network management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Synchronoss Personal Cloud platform that allows customers' subscribers to backup and protect, engage with, and manage their personal content. It also provides Synchronoss' Messaging platform comprising advanced messaging platform and email suites; and OnboardX products, including mobile content transfer solution that offers wireless transfer of content from one mobile smart device to another in a carrier retail location or at home/work, etc., as well as out of box experience solution, a device setup solution that assists customers in setting up the features of new device, such as Wi-Fi, email, social network accounts and voicemail, prompting restoration of content, and enrollment in a cloud service. In addition, the company provides NetworkX products comprising spatialNX, an enterprise-wide access to network information, including physical location, specifications, attributes, connectivity, and capacity for every plant asset; ConnectNX, a system that eliminates manual handling of service orders and manages the full order lifecycle between customer and supplier through automation and rules-based validation; and ExpenseNX, a financial analytics platform. Further, it offers professional services, such as consulting, installation and deployment, configuration, systems integration, and support services; and software development and customization services. The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was incorporated in 2000 and is headquartered in Bridgewater, New Jersey.