Head to Head Comparison: Rosetta Stone (RST) versus PTC (PTC)
Rosetta Stone (NYSE: RST) and PTC (NASDAQ:PTC) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.
Insider and Institutional Ownership
73.0% of Rosetta Stone shares are owned by institutional investors. Comparatively, 98.2% of PTC shares are owned by institutional investors. 13.0% of Rosetta Stone shares are owned by company insiders. Comparatively, 1.1% of PTC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Rosetta Stone has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, PTC has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
This table compares Rosetta Stone and PTC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Rosetta Stone and PTC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rosetta Stone presently has a consensus price target of $15.00, indicating a potential upside of 62.87%. PTC has a consensus price target of $63.13, indicating a potential upside of 12.92%. Given Rosetta Stone’s stronger consensus rating and higher probable upside, equities analysts clearly believe Rosetta Stone is more favorable than PTC.
Earnings & Valuation
This table compares Rosetta Stone and PTC’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Rosetta Stone||$193.97 million||1.06||$2.56 million||($0.53)||-17.38|
|PTC||$1.15 billion||5.62||$91.94 million||($0.35)||-159.71|
PTC has higher revenue and earnings than Rosetta Stone. PTC is trading at a lower price-to-earnings ratio than Rosetta Stone, indicating that it is currently the more affordable of the two stocks.
PTC beats Rosetta Stone on 10 of the 13 factors compared between the two stocks.
About Rosetta Stone
Rosetta Stone Inc. (Rosetta Stone) offers personalized language and reading programs. The Company’s solutions are used by schools, businesses, government organizations and individuals around the world. Its segments include Enterprise & Education, which derives revenues from sales to educational institutions, corporations and government agencies worldwide, and Consumer, which derives revenue from sales to individuals and retail partners. Its cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, corporate setting, or personal learning environment. Its Fit Brains business offers personalized brain training programs. The Company offers courses in over 30 languages across formats, including Web-based software subscriptions, digital downloads, mobile applications, and perpetual compact disc packages. It also offers a portfolio of technology-based learning products for personal use to the global consumer.
PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.
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