Synaptics (NASDAQ:SYNA) vs. Texas Instruments (NASDAQ:TXN) Head to Head Survey

Texas Instruments (NASDAQ:TXN) and Synaptics (NASDAQ:SYNA) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares Texas Instruments and Synaptics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Instruments	$17.68 billion	14.36	$5.00 billion	$6.57	42.32
Synaptics	$1.20 billion	3.41	-$490.80 million	($12.65)	-8.12

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

Analyst Ratings

This is a summary of current ratings and price targets for Texas Instruments and Synaptics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Instruments	4	9	15	1	2.45
Synaptics	1	9	3	1	2.29

Texas Instruments presently has a consensus target price of $312.12, indicating a potential upside of 12.24%. Synaptics has a consensus target price of $123.91, indicating a potential upside of 20.63%. Given Synaptics’ higher possible upside, analysts plainly believe Synaptics is more favorable than Texas Instruments.

Risk and Volatility

Texas Instruments has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.

Institutional and Insider Ownership

85.0% of Texas Instruments shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 0.6% of Texas Instruments shares are owned by insiders. Comparatively, 0.7% of Synaptics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Texas Instruments	31.11%	35.77%	17.31%
Synaptics	-41.00%	4.37%	2.27%

Summary

Texas Instruments beats Synaptics on 10 of the 14 factors compared between the two stocks.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

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.