Analyzing Synaptics (NASDAQ:SYNA) & GCT Semiconductor (NYSE:GCTS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GCT Semiconductor	-1,301.99%	N/A	-189.45%
Synaptics	-41.00%	4.37%	2.27%

Volatility and Risk

GCT Semiconductor has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCT Semiconductor	$2.87 million	45.02	-$43.37 million	($0.80)	-1.76
Synaptics	$1.20 billion	3.89	-$490.80 million	($12.57)	-9.33

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GCT Semiconductor and Synaptics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCT Semiconductor	1	0	2	0	2.33
Synaptics	1	11	2	0	2.07

GCT Semiconductor currently has a consensus target price of $3.50, indicating a potential upside of 149.11%. Synaptics has a consensus target price of $126.40, indicating a potential upside of 7.74%. Given GCT Semiconductor’s stronger consensus rating and higher probable upside, equities research analysts plainly believe GCT Semiconductor is more favorable than Synaptics.

Insider and Institutional Ownership

28.1% of GCT Semiconductor shares are held by institutional investors. Comparatively, 99.4% of Synaptics shares are held by institutional investors. 3.8% of GCT Semiconductor shares are held by company insiders. Comparatively, 0.7% of Synaptics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

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

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.

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.