Rosetta Stone (NYSE: RST) and Yodlee (NASDAQ:YDLE) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Rosetta Stone and Yodlee’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rosetta Stone $193.97 million 1.15 $2.56 million ($0.53) -18.89
Yodlee N/A N/A N/A N/A N/A

Rosetta Stone has higher revenue and earnings than Yodlee.

Insider & Institutional Ownership

73.0% of Rosetta Stone shares are held by institutional investors. 13.0% of Rosetta Stone shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Rosetta Stone and Yodlee, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosetta Stone 0 0 1 0 3.00
Yodlee 0 0 0 0 N/A

Rosetta Stone presently has a consensus target price of $15.00, indicating a potential upside of 49.85%. Given Rosetta Stone’s higher possible upside, equities research analysts plainly believe Rosetta Stone is more favorable than Yodlee.

Profitability

This table compares Rosetta Stone and Yodlee’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rosetta Stone -6.06% -926.26% -4.89%
Yodlee -11.25% -15.54% -11.53%

Summary

Rosetta Stone beats Yodlee on 7 of the 8 factors compared between the two stocks.

Rosetta Stone Company Profile

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.

Yodlee Company Profile

Yodlee, Inc. is a technology and applications platform for digital financial services in the cloud. The Company refers to its platform as the Yodlee Financial Cloud. It provides subscription services on a business-to-business-to-consumer (B2B2C) basis to financial services clients, whereby its customers offer solutions based on the Company’s platform to their end users. On a business-to-business (B2B) basis, the Company delivers an open platform to customers and third-party developers through its application programming interfaces’ (API’s). The Company also provides transaction-level data for data solutions and market research services. It serves two customer groups or channels, financial institutions and Yodlee Interactive customers. The Company provides access to its solutions across multiple channels, including Web, tablet and mobile.

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