Contrasting Synchronoss Technologies (NASDAQ:SNCR) & Audioeye (NASDAQ:AEYE)
by Mitch Edgeman · The Markets DailySynchronoss Technologies (NASDAQ:SNCR – Get Free Report) and Audioeye (NASDAQ:AEYE – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Synchronoss Technologies and Audioeye, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Synchronoss Technologies | 1 | 2 | 0 | 0 | 1.67 |
| Audioeye | 1 | 1 | 4 | 0 | 2.50 |
Audioeye has a consensus target price of $14.62, suggesting a potential upside of 111.34%. Given Audioeye’s stronger consensus rating and higher probable upside, analysts clearly believe Audioeye is more favorable than Synchronoss Technologies.
Volatility & Risk
Synchronoss Technologies has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Audioeye has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Earnings and Valuation
This table compares Synchronoss Technologies and Audioeye”s top-line revenue, earnings per share (EPS) 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 |
| Audioeye | $40.31 million | 2.16 | -$3.08 million | ($0.36) | -19.22 |
Synchronoss Technologies has higher revenue and earnings than Audioeye. Audioeye is trading at a lower price-to-earnings ratio than Synchronoss Technologies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Synchronoss Technologies and Audioeye’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% |
| Audioeye | -10.92% | 121.59% | 15.45% |
Institutional & Insider Ownership
51.7% of Synchronoss Technologies shares are held by institutional investors. Comparatively, 51.1% of Audioeye shares are held by institutional investors. 19.9% of Synchronoss Technologies shares are held by insiders. Comparatively, 25.9% of Audioeye shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Audioeye beats Synchronoss Technologies on 8 of the 14 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 Audioeye
AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.