Synchronoss Technologies (NASDAQ:SNCR) & Affirm (NASDAQ:AFRM) Critical Contrast

Synchronoss Technologies (NASDAQ:SNCR) and Affirm (NASDAQ:AFRM) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Volatility and Risk

Synchronoss Technologies has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Affirm has a beta of 3.67, meaning that its stock price is 267% more volatile than the S&P 500.

Earnings and Valuation

This table compares Synchronoss Technologies and Affirm”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchronoss Technologies	$170.91 million	0.61	$6.17 million	($1.02)	-8.82
Affirm	$3.24 billion	7.85	$52.19 million	$1.10	69.15

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

Institutional & Insider Ownership

51.7% of Synchronoss Technologies shares are owned by institutional investors. Comparatively, 69.3% of Affirm shares are owned by institutional investors. 19.9% of Synchronoss Technologies shares are owned by insiders. Comparatively, 11.0% of Affirm shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Synchronoss Technologies and Affirm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synchronoss Technologies	-5.69%	24.44%	3.59%
Affirm	9.63%	11.17%	3.14%

Analyst Ratings

This is a summary of recent ratings for Synchronoss Technologies and Affirm, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchronoss Technologies	1	2	0	0	1.67
Affirm	0	8	21	1	2.77

Affirm has a consensus target price of $92.04, indicating a potential upside of 20.99%. Given Affirm’s stronger consensus rating and higher probable upside, analysts clearly believe Affirm is more favorable than Synchronoss Technologies.

Summary

Affirm beats Synchronoss Technologies on 12 of the 15 factors compared between the two stocks.

About Synchronoss Technologies

Synchronoss Technologies, Inc. provides cloud, messaging, digital, and network management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Synchronoss Personal Cloud platform that allows customers' subscribers to backup and protect, engage with, and manage their personal content. It also provides Synchronoss' Messaging platform comprising advanced messaging platform and email suites; and OnboardX products, including mobile content transfer solution that offers wireless transfer of content from one mobile smart device to another in a carrier retail location or at home/work, etc., as well as out of box experience solution, a device setup solution that assists customers in setting up the features of new device, such as Wi-Fi, email, social network accounts and voicemail, prompting restoration of content, and enrollment in a cloud service. In addition, the company provides NetworkX products comprising spatialNX, an enterprise-wide access to network information, including physical location, specifications, attributes, connectivity, and capacity for every plant asset; ConnectNX, a system that eliminates manual handling of service orders and manages the full order lifecycle between customer and supplier through automation and rules-based validation; and ExpenseNX, a financial analytics platform. Further, it offers professional services, such as consulting, installation and deployment, configuration, systems integration, and support services; and software development and customization services. The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was incorporated in 2000 and is headquartered in Bridgewater, New Jersey.

About Affirm

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months. The company has active merchants covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence. Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel and ticketing, apparel, accessories, consumer electronics, and jewelry. Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.