Contrasting Red Hat (RHT) & CommVault Systems (CVLT)
Red Hat (NYSE: RHT) and CommVault Systems (NASDAQ:CVLT) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.
Earnings & Valuation
This table compares Red Hat and CommVault Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Red Hat||$2.52 billion||7.23||$432.71 million||$1.45||70.79|
|CommVault Systems||$664.72 million||3.98||$9.35 million||$0.05||1,162.00|
Red Hat has higher revenue and earnings than CommVault Systems. Red Hat is trading at a lower price-to-earnings ratio than CommVault Systems, indicating that it is currently the more affordable of the two stocks.
This table compares Red Hat and CommVault Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Red Hat and CommVault Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Red Hat currently has a consensus target price of $99.38, indicating a potential downside of 3.18%. CommVault Systems has a consensus target price of $67.63, indicating a potential upside of 16.39%. Given CommVault Systems’ stronger consensus rating and higher possible upside, analysts plainly believe CommVault Systems is more favorable than Red Hat.
Insider and Institutional Ownership
93.2% of Red Hat shares are held by institutional investors. Comparatively, 85.4% of CommVault Systems shares are held by institutional investors. 0.7% of Red Hat shares are held by company insiders. Comparatively, 13.4% of CommVault Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Red Hat has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, CommVault Systems has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Red Hat beats CommVault Systems on 9 of the 14 factors compared between the two stocks.
About Red Hat
Red Hat, Inc. (Red Hat) provides open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, management, middleware, cloud, mobile and storage technologies. Red Hat operates through three geographical segments: the Americas, including the United States, Canada and Latin America; EMEA, including Europe, Middle East and Africa, and Asia Pacific. Its products and services include infrastructure-related offerings, application development-related and other technology offerings, and consulting, support and training services. Its infrastructure-related offerings include Red Hat Enterprise Linux, Red Hat Satellite and Red Hat Enterprise Virtualization. Its application development-related and other technology offerings include Red Hat JBoss Middleware, Red Hat cloud offerings, Red Hat Mobile and Red Hat Storage. Its consulting services include upgrade planning, platform migrations, solution integration and application development.
About CommVault Systems
Commvault Systems, Inc. (Commvault) is a provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with data protection solutions supporting all operating systems, applications, and databases on virtual and physical servers, Network Attached Storage (NAS) shares, cloud-based infrastructures, and mobile devices; management through a single console; multiple protection methods, including backup and archive, snapshot management, replication, and content indexing for eDiscovery; storage management using deduplication for disk, tape and cloud; integration with the storage arrays; complete virtual infrastructure management supporting multiple hypervisors; security capabilities to limit access to critical data, and policy-based data management.
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