Perspecta (NYSE:PRSP) and Yext (NYSE:YEXT) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
Profitability
This table compares Perspecta and Yext's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Perspecta | -16.16% | 23.57% | 5.97% |
| Yext | -38.54% | -63.74% | -24.11% |
Institutional and Insider Ownership
76.2% of Perspecta shares are held by institutional investors. Comparatively, 70.6% of Yext shares are held by institutional investors. 14.8% of Perspecta shares are held by insiders. Comparatively, 14.2% of Yext shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Perspecta and Yext's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Perspecta | $4.50 billion | 1.05 | $-676,000,000.00 | $2.05 | 14.31 |
| Yext | $298.83 million | 5.41 | $-121,540,000.00 | ($1.09) | -11.77 |
Yext has lower revenue, but higher earnings than Perspecta. Yext is trading at a lower price-to-earnings ratio than Perspecta, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Perspecta has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Yext has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Perspecta and Yext, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Perspecta | 0 | 5 | 0 | 0 | 2.00 |
| Yext | 1 | 2 | 6 | 0 | 2.56 |
Perspecta currently has a consensus price target of $26.45, suggesting a potential downside of 9.85%. Yext has a consensus price target of $19.1667, suggesting a potential upside of 50.44%. Given Yext's stronger consensus rating and higher probable upside, analysts clearly believe Yext is more favorable than Perspecta.
Summary
Perspecta beats Yext on 8 of the 14 factors compared between the two stocks.
