Accelrys (NASDAQ: ACCL) and Red Hat (NYSE:RHT) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

94.8% of Red Hat shares are owned by institutional investors. 0.7% of Red Hat shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Accelrys and Red Hat’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accelrys N/A N/A N/A
Red Hat 11.49% 25.27% 7.43%

Analyst Recommendations

This is a summary of recent recommendations for Accelrys and Red Hat, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accelrys 0 0 0 0 N/A
Red Hat 1 8 22 0 2.68

Red Hat has a consensus price target of $112.48, suggesting a potential downside of 6.91%. Given Red Hat’s higher probable upside, analysts plainly believe Red Hat is more favorable than Accelrys.

Earnings & Valuation

This table compares Accelrys and Red Hat’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Accelrys N/A N/A N/A N/A N/A
Red Hat $2.64 billion 8.10 $489.77 million $1.66 72.79

Red Hat has higher revenue and earnings than Accelrys.

Summary

Red Hat beats Accelrys on 8 of the 8 factors compared between the two stocks.

About Accelrys

Accelrys, Inc. develops and commercializes scientific informatics software products and services for industries and organizations. The Company’s product lines include Pipeline Pilot, Accelrys Enterprise Research and Development (R & D) Platform; Computer Aided Design Modeling and Simulation Software; Enterprise Lab Notebook; Lab Execution Systems; Content Databases, and Data Management & Informatics Software. Its software and service solutions are used by its customers’ scientists, biologists, chemists and information technology professionals in order to aggregate, mine, integrate, analyze, simulate, manage and interactively report scientific data. Effective April 29, 2014, Dassault Systemes Americas Corp (Dassault), a unit of Dassault Systemes SA, acquired Accelrys Inc.

About Red Hat

Red Hat, Inc. (Red Hat) provides open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, management, middleware, cloud, mobile and storage technologies. Red Hat operates through three geographical segments: the Americas, including the United States, Canada and Latin America; EMEA, including Europe, Middle East and Africa, and Asia Pacific. Its products and services include infrastructure-related offerings, application development-related and other technology offerings, and consulting, support and training services. Its infrastructure-related offerings include Red Hat Enterprise Linux, Red Hat Satellite and Red Hat Enterprise Virtualization. Its application development-related and other technology offerings include Red Hat JBoss Middleware, Red Hat cloud offerings, Red Hat Mobile and Red Hat Storage. Its consulting services include upgrade planning, platform migrations, solution integration and application development.

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