New Relic (NEWR) & YuMe (NYSE:YUME) Financial Analysis
New Relic (NYSE: NEWR) and YuMe (NYSE:YUME) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
YuMe pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. New Relic does not pay a dividend. YuMe pays out 30.0% of its earnings in the form of a dividend.
This table compares New Relic and YuMe’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
New Relic has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, YuMe has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.
This is a breakdown of recent ratings for New Relic and YuMe, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
New Relic currently has a consensus price target of $47.78, indicating a potential upside of 6.79%. YuMe has a consensus price target of $3.00, indicating a potential downside of 31.03%. Given New Relic’s stronger consensus rating and higher possible upside, research analysts clearly believe New Relic is more favorable than YuMe.
Institutional & Insider Ownership
71.3% of New Relic shares are owned by institutional investors. Comparatively, 38.5% of YuMe shares are owned by institutional investors. 23.1% of New Relic shares are owned by insiders. Comparatively, 29.3% of YuMe shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares New Relic and YuMe’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|New Relic||$284.97 million||8.56||-$46.54 million||($1.13)||-39.59|
|YuMe||$159.78 million||0.94||$10.08 million||$0.10||43.50|
YuMe has higher revenue, but lower earnings than New Relic. New Relic is trading at a lower price-to-earnings ratio than YuMe, indicating that it is currently the more affordable of the two stocks.
New Relic beats YuMe on 8 of the 15 factors compared between the two stocks.
New Relic Company Profile
New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.
YuMe Company Profile
YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.
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