Financial Analysis: Avid Technology (AVID) & Stratasys (SSYS)
Avid Technology (NASDAQ: AVID) and Stratasys (NASDAQ:SSYS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
This is a breakdown of recent ratings and recommmendations for Avid Technology and Stratasys, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stratasys has a consensus price target of $25.00, indicating a potential upside of 12.82%. Given Stratasys’ higher probable upside, analysts plainly believe Stratasys is more favorable than Avid Technology.
Volatility & Risk
Avid Technology has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Stratasys has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.
Earnings & Valuation
This table compares Avid Technology and Stratasys’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Avid Technology||$511.93 million||0.57||$48.21 million||($0.18)||-39.16|
|Stratasys||$672.46 million||1.75||-$76.51 million||($1.06)||-20.91|
Avid Technology has higher revenue, but lower earnings than Stratasys. Avid Technology is trading at a lower price-to-earnings ratio than Stratasys, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
72.4% of Avid Technology shares are owned by institutional investors. Comparatively, 70.1% of Stratasys shares are owned by institutional investors. 7.5% of Avid Technology shares are owned by company insiders. Comparatively, 4.3% of Stratasys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Avid Technology and Stratasys’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Avid Technology beats Stratasys on 8 of the 14 factors compared between the two stocks.
About Avid Technology
Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.
Stratasys, Inc. is a manufacturer of three-dimensional (3D) printers and rapid prototyping (RP) systems for the office-based RP and direct digital manufacturing (DDM) markets. The Company develops, manufactures and sells a product line of 3D printers and DDM systems (and related consumable materials) that create physical models from computer-aided design (CAD) designs. It also offer rapid prototyping and production part manufacturing services through its centers located in North America, Europe and Australia. In January 2009, the Company introduced the uPrint Personal 3D Printer. In January 2009, it began offering a thermoplastic for direct digital manufacturing and rapid prototyping called ULTEM 9085.
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