Avid Technology (NASDAQ:AVID) and Cornerstone OnDemand (NASDAQ:CSOD) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Volatility and Risk
Avid Technology has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Cornerstone OnDemand has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares Avid Technology and Cornerstone OnDemand'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 | $411.79 million | 2.17 | $7.60 million | $0.36 | 56.06 |
Cornerstone OnDemand | $576.52 million | 5.81 | $-4,050,000.00 | $1.17 | 43.95 |
Avid Technology has higher earnings, but lower revenue than Cornerstone OnDemand. Cornerstone OnDemand is trading at a lower price-to-earnings ratio than Avid Technology, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
67.3% of Avid Technology shares are held by institutional investors. Comparatively, 79.9% of Cornerstone OnDemand shares are held by institutional investors. 6.7% of Avid Technology shares are held by insiders. Comparatively, 7.2% of Cornerstone OnDemand shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Avid Technology and Cornerstone OnDemand's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Avid Technology | 5.19% | -11.17% | 6.05% |
Cornerstone OnDemand | -4.70% | 51.19% | 6.97% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Avid Technology and Cornerstone OnDemand, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Avid Technology | 0 | 0 | 3 | 0 | 3.00 |
Cornerstone OnDemand | 1 | 3 | 4 | 0 | 2.38 |
Avid Technology presently has a consensus price target of $17.75, suggesting a potential downside of 12.04%. Cornerstone OnDemand has a consensus price target of $55.6667, suggesting a potential upside of 8.26%. Given Cornerstone OnDemand's higher possible upside, analysts clearly believe Cornerstone OnDemand is more favorable than Avid Technology.
Summary
Cornerstone OnDemand beats Avid Technology on 10 of the 14 factors compared between the two stocks.