Critical Contrast: Rexel (OTCMKTS:RXLSF) vs. TD SYNNEX (NYSE:SNX)

Rexel (OTCMKTS:RXLSF) and TD SYNNEX (NYSE:SNX) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares Rexel and TD SYNNEX’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rexel	N/A	N/A	N/A	$0.76	30.95
TD SYNNEX	$60.79 billion	0.15	$651.31 million	$7.02	14.25

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

Dividends

Rexel pays an annual dividend of $0.75 per share and has a dividend yield of 3.2%. TD SYNNEX pays an annual dividend of $1.40 per share and has a dividend yield of 1.4%. Rexel pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TD SYNNEX pays out 19.9% of its earnings in the form of a dividend. TD SYNNEX has raised its dividend for 2 consecutive years.

Profitability

This table compares Rexel and TD SYNNEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rexel	N/A	N/A	N/A
TD SYNNEX	1.10%	13.25%	3.68%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Rexel and TD SYNNEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rexel	0	2	1	0	2.33
TD SYNNEX	0	4	3	1	2.63

TD SYNNEX has a consensus price target of $108.27, indicating a potential upside of 8.20%. Given TD SYNNEX’s stronger consensus rating and higher possible upside, analysts plainly believe TD SYNNEX is more favorable than Rexel.

Institutional and Insider Ownership

51.4% of Rexel shares are held by institutional investors. Comparatively, 84.0% of TD SYNNEX shares are held by institutional investors. 1.7% of TD SYNNEX shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

TD SYNNEX beats Rexel on 13 of the 15 factors compared between the two stocks.

About Rexel

Rexel S.A., together with its subsidiaries, engages in distribution of low and ultra-low voltage electrical products and services for the residential, commercial, and industrial energy markets in France, Europe, North America, and Asia-Pacific. The company offers smart cameras, sensors, controllers, and monitoring software; light sources, lights, and control switches; climate control products, including heat pumps, air conditioning, and water heaters; fire alarms, surveillance equipment, access controls devices, and emergency lightings; and connection cables, and switches and routers, as well as enclosures, mounts, and racks. It also provides solar modules and inverters; connected lighting, intelligent home system, home control touch screen, and smart thermostat products; residential chargers, commercial stations, and charging cables for electric vehicles; electric motors, variable speed drives, programmable logic controllers, and computers and operator interface; and fastening systems, electrical power and control, and valves and instrumentation products. The company offers products, services, and solutions in the fields of technical supply, automation, and energy management related to the construction, renovation, maintenance, and production. It operates a network of approximately 1,900 branches in 21 countries. The company was founded in 1967 and is headquartered in Paris, France.

About TD SYNNEX

TD SYNNEX Corporation operates as a distributor and solutions aggregator for the information technology (IT) ecosystem. The company offers personal computing devices and peripherals, mobile phones and accessories, printers, supplies, and endpoint technology software; and data center technologies, such as hybrid cloud, security, storage, networking, servers, technology software, and converged and hyper-converged infrastructure, as well as computing components. It also provides systems design and rack integration, build-to-order, and configure-to-order assembly; and thermal testing, power-draw testing, burn-in, and quality and logistics support. In addition, the company offers outsourced fulfilment, virtual distribution, and direct ship to end-users; shipping documents generation, multi-level serial number tracking, and configured products and online order and shipment tracking, as well as turn-key logistics solutions. Further, it provides public cloud solutions in productivity and collaboration, IaaS, or Infrastructure as a Service, PaaS, or Platform as a Service, SaaS, or Software as a Service, security, mobility, IoT, and other hybrid solutions. Additionally, the company offers online services; provides net terms, third party leasing, floor plan financing, and letters-of-credit backed financing and arrangement; and leases products and provides device-as-a-service, as well as offers direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was incorporated in 1980 and is headquartered in Fremont, California.