Crossroads Systems (CRDSQ) & Avid Technology (AVID) Critical Comparison
Crossroads Systems (OTCMKTS: CRDSQ) and Avid Technology (NASDAQ:AVID) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
7.5% of Crossroads Systems shares are owned by institutional investors. Comparatively, 71.8% of Avid Technology shares are owned by institutional investors. 27.4% of Crossroads Systems shares are owned by insiders. Comparatively, 7.5% of Avid Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Crossroads Systems and Avid Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Crossroads Systems and Avid Technology’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Avid Technology||$511.93 million||0.48||$48.21 million||($0.18)||-33.11|
Avid Technology has higher revenue and earnings than Crossroads Systems. Avid Technology is trading at a lower price-to-earnings ratio than Crossroads Systems, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Crossroads Systems has a beta of 2.74, suggesting that its stock price is 174% more volatile than the S&P 500. Comparatively, Avid Technology has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Crossroads Systems and Avid Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avid Technology has a consensus target price of $4.50, indicating a potential downside of 24.50%. Given Avid Technology’s higher probable upside, analysts clearly believe Avid Technology is more favorable than Crossroads Systems.
Avid Technology beats Crossroads Systems on 7 of the 9 factors compared between the two stocks.
Crossroads Systems Company Profile
Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.
Avid Technology Company Profile
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.
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