Avast (LON:AVST) and AVEVA Group (LON:AVV) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.
Analyst Recommendations
This is a summary of current recommendations for Avast and AVEVA Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Avast | 2 | 2 | 7 | 1 | 2.58 |
AVEVA Group | 1 | 4 | 2 | 0 | 2.14 |
Avast presently has a consensus price target of GBX 543.18, indicating a potential upside of 16.26%. AVEVA Group has a consensus price target of GBX 4,035.71, indicating a potential upside of 17.28%. Given AVEVA Group's higher possible upside, analysts plainly believe AVEVA Group is more favorable than Avast.
Valuation and Earnings
This table compares Avast and AVEVA Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Avast | £878.80 million | 5.43 | N/A | GBX 21 | 22.08 |
AVEVA Group | £774.50 million | 12.90 | N/A | GBX 19.50 | 178.21 |
Avast is trading at a lower price-to-earnings ratio than AVEVA Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Avast and AVEVA Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Avast | N/A | N/A | N/A |
AVEVA Group | N/A | N/A | N/A |
Dividends
Avast pays an annual dividend of GBX 0.14 per share and has a dividend yield of 0.0%. AVEVA Group pays an annual dividend of GBX 0.36 per share and has a dividend yield of 0.0%. Avast pays out 0.7% of its earnings in the form of a dividend. AVEVA Group pays out 1.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Avast is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Avast beats AVEVA Group on 7 of the 10 factors compared between the two stocks.