Under-the-Radar Tech Stocks for Today

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If you can't beat 'em, be their supplier.

Companies can either compete with the likes of Google(GOOG Quote) and Microsoft(MSFT Quote), or they can provide the tech giants with software applications, wireless equipment and Internet services.

Synaptics(SYNA Quote) and Open Text(OTEX Quote) are two small-capitalization companies riding in the slipstream of the world's biggest names in technology, operating in the hottest niche industries. They're both rated "buy" from TheStreet.com Ratings. Only 76 of 1,001 information-technology stocks covered by TheStreet.com Ratings earn such a recommendation.

Santa Clara, Calif.-based Synaptics develops custom interfaces, such as roll pads and touch screens, for electronic-device makers including Samsung and Lenovo(LNVGY Quote), in addition to Internet search company Google and software maker Microsoft. Synaptics has benefited from the rapid expansion of portable music players and smart phones. A big backlog, proprietary technologies and customizable designs have helped Synaptics wield a competitive edge despite a drop in industrial equipment spending that's hurting larger rivals. The company has secured lucrative contracts because of its technological expertise and low-cost products. It recently unveiled a buttonless remote control for the so-called digital home.

During the company's fiscal third quarter, revenue climbed 28% to $100 million, beating the industry's average growth rate of 3.1%. Earnings per share more than doubled. Synaptics has about $174 million in cash, and a modest debt-to-equity ratio of 0.44.

Looking at peer valuation in the computer storage and peripherals industry, the shares are expensive based on earnings, sales and book value. The stock more than doubled this year. However, rich prices are common for fast-growth technology stocks.