Head to Head Contrast: TD SYNNEX (NYSE:SNX) & SMC (OTCMKTS:SMCAY)

SMC (OTCMKTS:SMCAY) and TD SYNNEX (NYSE:SNX) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional & Insider Ownership

1.0% of SMC shares are owned by institutional investors. Comparatively, 84.0% of TD SYNNEX shares are owned by institutional investors. 1.0% of TD SYNNEX 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC	$5.20 billion	3.65	$1.03 billion	$0.75	19.80
TD SYNNEX	$58.45 billion	0.21	$689.09 million	$8.56	17.56

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

Risk and Volatility

SMC has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, TD SYNNEX has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Dividends

SMC pays an annual dividend of $0.23 per share and has a dividend yield of 1.5%. TD SYNNEX pays an annual dividend of $1.76 per share and has a dividend yield of 1.2%. SMC pays out 30.7% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SMC	18.00%	7.31%	6.68%
TD SYNNEX	1.21%	11.58%	3.18%

Analyst Recommendations

This is a breakdown of current ratings for SMC and TD SYNNEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC	0	0	0	0	0.00
TD SYNNEX	0	2	8	0	2.80

TD SYNNEX has a consensus target price of $153.10, indicating a potential upside of 1.87%. Given TD SYNNEX’s stronger consensus rating and higher probable upside, analysts plainly believe TD SYNNEX is more favorable than SMC.

Summary

TD SYNNEX beats SMC on 11 of the 17 factors compared between the two stocks.

About SMC

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers air management system, directional control valves, air cylinders, rotatory actuators/air grippers, electric actuators/cylinders, fitting and tubing, and modular F.R.L./pressure control equipment, as well as vacuum, air preparation, and lubrication equipment. It also provides flow control equipment, speed controllers, silencers/exhaust/blow guns/pressure gauges, switches/sensors/controllers, static neutralization equipment, and industrial device communication equipment/wireless system. In addition, the company offers process valves, chemical liquid valves/fittings and needle valves/tubing, process pumps, temperature control equipment, and process gas equipment, as well as high vacuum equipment, industrial filters/sintered metal elements, and pneumatic instrumentation and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.

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.