Reviewing Synaptics (NASDAQ:SYNA) & Camtek (NASDAQ:CAMT)
by Danessa Lincoln · The Markets DailyCamtek (NASDAQ:CAMT – Get Free Report) and Synaptics (NASDAQ:SYNA – Get Free Report) are both mid-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Analyst Recommendations
This is a summary of current ratings and target prices for Camtek and Synaptics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Camtek | 0 | 7 | 7 | 0 | 2.50 |
| Synaptics | 1 | 9 | 3 | 1 | 2.29 |
Camtek presently has a consensus target price of $177.83, suggesting a potential upside of 20.93%. Synaptics has a consensus target price of $123.91, suggesting a potential upside of 20.63%. Given Camtek’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Camtek is more favorable than Synaptics.
Risk & Volatility
Camtek has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.
Valuation and Earnings
This table compares Camtek and Synaptics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Camtek | $496.07 million | 13.83 | $50.72 million | $0.64 | 229.77 |
| Synaptics | $1.20 billion | 3.41 | -$490.80 million | ($12.65) | -8.12 |
Camtek has higher earnings, but lower revenue than Synaptics. Synaptics is trading at a lower price-to-earnings ratio than Camtek, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Camtek and Synaptics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Camtek | 7.40% | 21.58% | 10.89% |
| Synaptics | -41.00% | 4.37% | 2.27% |
Insider & Institutional Ownership
41.9% of Camtek shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 79.4% of Camtek shares are owned by company insiders. Comparatively, 0.7% of Synaptics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Camtek beats Synaptics on 11 of the 15 factors compared between the two stocks.
About Camtek
Camtek Ltd., together with its subsidiaries, develops, manufactures, and sells inspection and metrology equipment for semiconductor industry. The company provides Eagle-i, a system that delivers 2D inspection and metrology capabilities; Eagle-AP, which addresses the advanced packaging market using software and hardware technologies that deliver superior 2D and 3D inspection and metrology capabilities on the same platform; and Golden Eagle, a panel inspection and metrology system to address the challenges fanout wafer level packaging applications. It also develops automatic defect classification, which provides automatic defect classification of color images utilizing deep learning techniques to reduce and eliminate manual verification. In addition, the company offers MicroProf AP, a wafer metrology tool for applications at 3D packaging process steps; MicroProf DI, an optical inspection tool that enables inspection of structured and unstructured wafers for manufacturing process; MicroProf FE, a 2D/3D wafer metrology tool that serve front end HVM fab; MicroProf FS, an wafer metrology tool configurable for wafer foundry; MicroProf PT for hybrid metrology applications to common panel sizes; MicroProf MHU metrology tool, a material handling unit for semiconductor, MEMS, sapphire, and LED industries; MicroProf TL, an optical surface measurement tool for fully automatic 3D surface measurements; MicroProf 100, a universal surface metrology tool for determination of topography and film and sample thickness; MicroProf 200, a measuring device for contactless and non-destructive characterization of surfaces and films; and MicroProf 300, a SurfaceSens technology for quality assurance, development, and manufacturing. It serves semiconductor manufacturers, outsourced semiconductor assembly and test, integrated device manufacturers, and wafer level packaging subcontractors. Camtek Ltd. was incorporated in 1987 and is headquartered in Migdal Haemek, Israel.
About Synaptics
Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.