Synaptics (SYNA) vs. Integrated Device Technology (IDTI) Critical Analysis

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

Analyst Ratings

This is a summary of current ratings and target prices for Synaptics and Integrated Device Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synaptics 2 5 7 0 2.36
Integrated Device Technology 0 2 10 0 2.83

Synaptics presently has a consensus target price of $50.17, suggesting a potential upside of 11.38%. Integrated Device Technology has a consensus target price of $37.95, suggesting a potential upside of 5.58%. Given Synaptics’ higher probable upside, equities research analysts plainly believe Synaptics is more favorable than Integrated Device Technology.

Profitability

This table compares Synaptics and Integrated Device Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synaptics -7.61% 11.07% 5.40%
Integrated Device Technology 0.21% 26.05% 13.42%

Insider & Institutional Ownership

99.4% of Integrated Device Technology shares are held by institutional investors. 3.7% of Synaptics shares are held by insiders. Comparatively, 1.2% of Integrated Device Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Synaptics has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Integrated Device Technology has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Earnings and Valuation

This table compares Synaptics and Integrated Device Technology’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synaptics $1.63 billion 0.96 -$124.10 million $1.98 22.75
Integrated Device Technology $842.76 million 5.52 -$12.13 million $1.27 28.31

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

Summary

Integrated Device Technology beats Synaptics on 10 of the 14 factors compared between the two stocks.

About Synaptics

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.

About Integrated Device Technology

Integrated Device Technology, Inc. designs, develops, manufactures, and markets a range of semiconductor solutions for the communications, computing, consumer, automotive, industrial, and industrial end-markets. It operates in two segments, Communications; and Computing, Consumer and Industrial. The Communications segment offers clocks and timing solutions; radio frequency products; flow-control management products, including multi-port products; telecommunication interface products; static random access memory products; first in and first out memories; digital logic products; optical interconnect and frequency control solutions; and Serial RapidIO switching solutions. The Computing, Consumer and Industrial segment provides clock generation and distribution products; programmable timing devices; computing timing solutions; high-performance server memory interfaces; wireless power products; PCI Express products; signal integrity products; power management integrated circuits; video distribution and contribution solutions; sensor signal conditioners; and optical interconnect solutions, as well as sensing products for mobile, automotive, and industrial solutions. The company markets its products primarily to original equipment manufacturers through various channels, including direct sales, distributors, electronic manufacturing suppliers, and independent sales representatives. Integrated Device Technology, Inc. was founded in 1980 and is headquartered in San Jose, California.

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