Financial Analysis: MKS (NASDAQ:MKSI) and TD SYNNEX (NYSE:SNX)

MKS (NASDAQ:MKSI) and TD SYNNEX (NYSE:SNX) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for MKS and TD SYNNEX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MKS	1	1	8	0	2.70
TD SYNNEX	0	2	8	0	2.80

MKS currently has a consensus price target of $119.80, suggesting a potential upside of 20.56%. TD SYNNEX has a consensus price target of $149.30, suggesting a potential upside of 2.78%. Given MKS’s higher probable upside, analysts plainly believe MKS is more favorable than TD SYNNEX.

Risk & Volatility

MKS has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, TD SYNNEX has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MKS	7.11%	20.65%	5.68%
TD SYNNEX	1.21%	11.58%	3.18%

Valuation & Earnings

This table compares MKS and TD SYNNEX”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MKS	$3.74 billion	1.78	$190.00 million	$3.94	25.22
TD SYNNEX	$58.45 billion	0.20	$689.09 million	$8.56	16.97

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

Insider and Institutional Ownership

99.8% of MKS shares are held by institutional investors. Comparatively, 84.0% of TD SYNNEX shares are held by institutional investors. 0.6% of MKS shares are held by company insiders. Comparatively, 1.0% 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.

Dividends

MKS pays an annual dividend of $0.88 per share and has a dividend yield of 0.9%. TD SYNNEX pays an annual dividend of $1.76 per share and has a dividend yield of 1.2%. MKS pays out 22.3% of its earnings in the form of a dividend. TD SYNNEX pays out 20.6% 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.

About MKS

MKS Instruments, Inc. provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications in the United States, Germany, China, South Korea, and internationally. It operates through Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD) segments. The VSD segment provides foundational technology solutions, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology. The PSD segment offers range of solutions, which include lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, temperature sensing, opto-mechanical components, optical elements, systems for flexible PCB laser processing, and laser-based systems, as well as high density interconnect PCB and package manufacturing. The MSD segment develops, process, and manufactures technologies comprising advanced surface modification, electroless and electrolytic plating, and surface finishing for chemistry, equipment, software, and services markets, as well as high-technology applications. In addition, the company sells its products and services through direct sales, network of independent distributors, and sales representatives, as well as websites, including product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.

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.