Spirent Communications (SPT) Competitors

Persimmon (LON:PSN) and Spirent Communications (LON:SPT) are both computer software companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership, media sentiment and dividends.

Does the media favor PSN or SPT?

In the previous week, Persimmon had 9 more articles in the media than Spirent Communications. MarketBeat recorded 9 mentions for Persimmon and 0 mentions for Spirent Communications. Persimmon's average media sentiment score of 0.55 beat Spirent Communications' score of 0.00 indicating that Persimmon is being referred to more favorably in the media.

Company	Overall Sentiment
Persimmon	Positive
Spirent Communications	Neutral

Do insiders and institutionals believe in PSN or SPT?

59.0% of Persimmon shares are owned by institutional investors. Comparatively, 124.2% of Spirent Communications shares are owned by institutional investors. 3.0% of Persimmon shares are owned by company insiders. Comparatively, 3.3% of Spirent Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Is PSN or SPT a better dividend stock?

Persimmon pays an annual dividend of GBX 60 per share and has a dividend yield of 4.9%. Spirent Communications pays an annual dividend of GBX 6 per share and has a dividend yield of 3.1%. Persimmon pays out 75.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Spirent Communications pays out 324.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Persimmon is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has higher valuation & earnings, PSN or SPT?

Persimmon has higher revenue and earnings than Spirent Communications. Persimmon is trading at a lower price-to-earnings ratio than Spirent Communications, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Persimmon	£2.92B	1.35	£257.98M	£79.87	15.30
Spirent Communications	£561.21M	2.46	£16.67M	£1.85	104.17

Which has more volatility & risk, PSN or SPT?

Persimmon has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Spirent Communications has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Do analysts recommend PSN or SPT?

Persimmon presently has a consensus price target of GBX 1,447.50, suggesting a potential upside of 18.45%. Spirent Communications has a consensus price target of GBX 236, suggesting a potential upside of 22.46%. Given Spirent Communications' stronger consensus rating and higher possible upside, analysts clearly believe Spirent Communications is more favorable than Persimmon.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Persimmon	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33
Spirent Communications	0 Sell rating(s)	0 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	3.00

Is PSN or SPT more profitable?

Persimmon has a net margin of 8.84% compared to Spirent Communications' net margin of 2.97%. Persimmon's return on equity of 7.51% beat Spirent Communications' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Persimmon	8.84%	7.51%	8.28%
Spirent Communications	2.97%	3.54%	2.77%

Summary

Persimmon beats Spirent Communications on 11 of the 18 factors compared between the two stocks.