Comparing TD SYNNEX (NYSE:SNX) & Preformed Line Products (NASDAQ:PLPC)

TD SYNNEX (NYSE:SNX) and Preformed Line Products (NASDAQ:PLPC) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Earnings and Valuation

This table compares TD SYNNEX and Preformed Line Products”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TD SYNNEX	$58.45 billion	0.20	$689.09 million	$8.56	16.51
Preformed Line Products	$593.71 million	1.28	$37.09 million	$8.56	17.98

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

Dividends

TD SYNNEX pays an annual dividend of $1.76 per share and has a dividend yield of 1.2%. Preformed Line Products pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. TD SYNNEX pays out 20.6% of its earnings in the form of a dividend. Preformed Line Products pays out 9.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TD SYNNEX has increased its dividend for 5 consecutive years. TD SYNNEX is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

84.0% of TD SYNNEX shares are held by institutional investors. Comparatively, 41.2% of Preformed Line Products shares are held by institutional investors. 1.0% of TD SYNNEX shares are held by insiders. Comparatively, 33.8% of Preformed Line Products 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.

Profitability

This table compares TD SYNNEX and Preformed Line Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TD SYNNEX	1.21%	11.58%	3.18%
Preformed Line Products	6.70%	9.69%	7.09%

Risk & Volatility

TD SYNNEX has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Preformed Line Products has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for TD SYNNEX and Preformed Line Products, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TD SYNNEX	0	2	8	0	2.80
Preformed Line Products	0	0	0	0	0.00

TD SYNNEX presently has a consensus target price of $149.30, suggesting a potential upside of 5.65%. Given TD SYNNEX’s stronger consensus rating and higher probable upside, equities research analysts clearly believe TD SYNNEX is more favorable than Preformed Line Products.

Summary

TD SYNNEX beats Preformed Line Products on 10 of the 16 factors compared between the two stocks.

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 fulfillment, 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 founded in 1974 and is headquartered in Fremont, California.

About Preformed Line Products

Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems that are used in the construction and maintenance of overhead, ground-mounted, and underground networks for the energy, telecommunication, cable, data communication, and other industries. The company offers optical ground wire products to support, protect, terminate, and splice transmission and distribution lines, as well as bolted, welded, and compressed connectors for substations; and string hardware products, polymer insulators, wildlife protection, substation fittings, and motion control devices. It also provides rugged outside plant closures to protect and support wireline and wireless networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and hardware assemblies, pole line hardware, plastic products, cable dynamics/vibration solutions, interior/exterior connectors, tools, and urethane solutions that are used by energy, renewable energy, communications, cable, and special industries for various applications. The company serves public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It markets its products through a direct sales force, as well as through manufacturing representatives. Preformed Line Products Company was incorporated in 1947 and is headquartered in Mayfield Village, Ohio.