Demandware (DWRE) versus Synchronoss Technologies (SNCR) Critical Survey

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

Earnings and Valuation

This table compares Synchronoss Technologies and Demandware’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Synchronoss Technologies $476.75 million 1.00 $54.33 million $0.44 24.57
Demandware N/A N/A N/A ($1.20) -62.47

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

Insider and Institutional Ownership

93.0% of Synchronoss Technologies shares are held by institutional investors. 11.0% of Synchronoss Technologies shares are held by company 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Synchronoss Technologies and Demandware, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synchronoss Technologies 1 5 2 0 2.13
Demandware 0 0 0 0 N/A

Synchronoss Technologies presently has a consensus target price of $25.00, suggesting a potential upside of 131.27%. Given Synchronoss Technologies’ higher probable upside, analysts plainly believe Synchronoss Technologies is more favorable than Demandware.

Risk and Volatility

Synchronoss Technologies has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Demandware has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Synchronoss Technologies 3.38% 11.20% 6.21%
Demandware -17.65% -16.30% -12.67%

Summary

Synchronoss Technologies beats Demandware on 10 of the 10 factors compared between the two stocks.

About Synchronoss Technologies

Synchronoss Technologies, Inc. is a global software and services company, which provides technologies and services for the mobile transformation of business. The Company’s portfolio in the Consumer and Enterprise markets contains offerings, such as personal cloud, secure-mobility, identity management and scalable messaging platforms, products and solutions. Its products and platforms are designed to enable multiple converged communication services to be managed across a range of distribution channels, including e-commerce, m-commerce, telesales, customer stores, indirect and other retail outlets. The Company operates in and markets their solutions and services directly through their sales organizations in North America, Europe, the Middle East and Africa (EMEA), Latin America and the Asia-Pacific region. It delivers technologies for mobile transformation to service provider and enterprise customers in regulated verticals and use cases.

About Demandware

Demandware, Inc. is a provider of enterprise-class cloud commerce solutions for retailers and branded manufacturers, including solutions for digital commerce and point of sale, as well as order management and intelligence capabilities. The Company’s Demandware Commerce offering is a combination of its cloud platform, community and related services that enables customers to establish and execute complex digital commerce solutions. Demandware Commerce facilitates omni-channel processes, multi-brand and multi-site rollouts, predictive merchandising and in-store operations. Its technology platform is the Demandware Commerce Cloud. The Demandware Commerce Cloud consists of over two primary solutions, such as Demandware Digital and Demandware Store. It also offers Demandware LINK, which includes technology, solution and an end-to end partners. LINK Technology Partners provide customers with access to technologies that complement the Demandware Commerce Cloud through pre-built integrations.

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