Analyzing Ebang International (NASDAQ:EBON) and Synaptics (NASDAQ:SYNA)

Synaptics (NASDAQ:SYNA) and Ebang International (NASDAQ:EBON) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Institutional and Insider Ownership

99.4% of Synaptics shares are held by institutional investors. Comparatively, 1.1% of Ebang International shares are held by institutional investors. 1.3% of Synaptics shares are held by insiders. Comparatively, 25.4% of Ebang International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Synaptics and Ebang International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synaptics	16.14%	1.30%	0.65%
Ebang International	N/A	N/A	N/A

Valuation & Earnings

This table compares Synaptics and Ebang International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synaptics	$979.40 million	3.31	$125.60 million	$3.95	20.51
Ebang International	$3.59 million	9.07	-$36.77 million	N/A	N/A

Synaptics has higher revenue and earnings than Ebang International.

Risk & Volatility

Synaptics has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Ebang International has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Synaptics and Ebang International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synaptics	0	3	6	0	2.67
Ebang International	0	0	0	0	0.00

Synaptics presently has a consensus price target of $97.33, suggesting a potential upside of 20.15%. Given Synaptics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Synaptics is more favorable than Ebang International.

Summary

Synaptics beats Ebang International on 9 of the 12 factors compared between the two stocks.

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.

About Ebang International

Ebang International Holdings Inc., through its subsidiaries, engages in the research, design, and development of application-specific integrated circuit chips and manufacture of Bitcoin mining machines under the Ebit brand in Singapore, Hong Kong, Australia, the Bahamas, and internationally. It also provides mining machine hosting services; and engages in the development of proprietary cryptocurrency exchange platform. In addition, the company offers fiber-optic communication access devices, including multiprotocol label switching fiber-optic access network devices, multi-service access platform integrated business access devices, and wavelength-division multiplexing fiber-optic devices; and enterprise convergent terminal products, which consists gigabit passive optical network, Fiber to the Room products, passive optical network converged gateways, enterprise cloud gateway devices, industrial Internet of Things access devices, and business enterprise smart wireless access devices. It serves the blockchain and telecommunications industries. The company also operates a cross-border payment and foreign exchange platform. It sells its blockchain products directly, as well as through its website; and telecommunication products under the EBANG brand name primarily through supplier contracts. The company was incorporated in 2018 and is headquartered in Hangzhou, China.