Synacor (SYNC) and NCI (NCIT) Head to Head Review

Synacor (NASDAQ: SYNC) and NCI (NASDAQ:NCIT) are both small-cap it services & consulting – nec companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Earnings and Valuation

This table compares Synacor and NCI’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synacor $127.37 million 0.71 -$10.74 million ($0.40) -5.88
NCI N/A N/A N/A $0.42 47.62

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

Profitability

This table compares Synacor and NCI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synacor -9.87% -31.12% -15.09%
NCI 2.53% 8.07% 5.69%

Volatility and Risk

Synacor has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, NCI has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Synacor and NCI, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synacor 0 2 3 0 2.60
NCI 0 3 1 0 2.25

Synacor currently has a consensus price target of $5.00, suggesting a potential upside of 112.77%. NCI has a consensus price target of $18.33, suggesting a potential downside of 8.33%. Given Synacor’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Synacor is more favorable than NCI.

Insider & Institutional Ownership

30.1% of Synacor shares are owned by institutional investors. Comparatively, 38.6% of NCI shares are owned by institutional investors. 21.9% of Synacor shares are owned by insiders. Comparatively, 45.4% of NCI shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

NCI beats Synacor on 8 of the 12 factors compared between the two stocks.

About Synacor

Synacor, Inc. is a technology development, multiplatform services and revenue partner for video, Internet and communications providers, device manufacturers and enterprises. The Company enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, actionable data and implementation. Through its Managed Portals and Advertising solutions, the Company enables its customers to earn revenue by monetizing media among their consumers. Its Managed Portals are delivered across devices and under its customers’ own brand names. The Company delivers content, such as top news, entertainment, and long- and short-form video and applications, on its Managed Portals. In addition, consumers have the ability through portals to manage their e-mail and messaging, pay bills, receive special promotions and perform other account management needs.

About NCI

NCI, Inc. is a provider of enterprise services and solutions to defense, intelligence, healthcare and civilian government agencies. The Company provides information technology (IT), and professional services and solutions by leveraging its core service offerings, which include cloud computing and IT infrastructure optimization; cybersecurity and information assurance; engineering and logistics support; enterprise information management and advanced analytics; health IT and medical support; IT service management; modeling, simulation, and training, and agile development and integration. The Company helps its clients to navigate the range of cloud, Everything-as-a-Service (EaaS), capacity services and virtualization options available. The Company provides its customers the full lifecycle of cybersecurity services, including policy and planning, compliance, identity and access management, training, education, awareness and enterprise security operations.

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