Apigee Corp (NASDAQ: APIC) and F5 Networks (NASDAQ:FFIV) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a breakdown of current ratings and price targets for Apigee Corp and F5 Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apigee Corp 0 2 0 0 2.00
F5 Networks 1 15 4 0 2.15

F5 Networks has a consensus price target of $128.94, suggesting a potential upside of 10.77%. Given F5 Networks’ stronger consensus rating and higher possible upside, analysts plainly believe F5 Networks is more favorable than Apigee Corp.

Insider and Institutional Ownership

42.5% of Apigee Corp shares are held by institutional investors. Comparatively, 96.5% of F5 Networks shares are held by institutional investors. 40.6% of Apigee Corp shares are held by company insiders. Comparatively, 0.3% of F5 Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Apigee Corp has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, F5 Networks has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Apigee Corp and F5 Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apigee Corp -37.94% -73.27% -31.65%
F5 Networks 18.96% 33.85% 16.98%

Earnings & Valuation

This table compares Apigee Corp and F5 Networks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Apigee Corp N/A N/A N/A ($1.40) -12.41
F5 Networks $2.08 billion 3.56 $627.75 million $6.03 19.30

F5 Networks has higher revenue and earnings than Apigee Corp. Apigee Corp is trading at a lower price-to-earnings ratio than F5 Networks, indicating that it is currently the more affordable of the two stocks.

Summary

F5 Networks beats Apigee Corp on 10 of the 11 factors compared between the two stocks.

About Apigee Corp

Apigee Corporation is engaged in providing a software platform that allows businesses to design, deploy, and scale application program interfaces (APIs), as a connection layer between their core information technology (IT) systems and data and the applications, with which their customers, partners, employees and other users engage with the business. Its platform consists of the products, including Apigee Edge, Apigee Edge PRO, Apigee Link, Apigee Sense and Apigee Insights. Apigee Edge is an API-management solution. Apigee Insights is its predictive analytics software solution. Apigee Link is its Internet of Things (IoT) platform for connecting devices to the Internet, which is under development and in beta testing with certain customers. Apigee Sense is a bot prevention product. Apigee Edge PRO is a cloud-delivered service and is an API management for small and medium-sized businesses and divisions in a range of enterprises. It delivers its platform both in the cloud and on premises.

About F5 Networks

F5 Networks, Inc. is a developer and provider of software defined application services. The Company is engaged in the development, marketing and sale of application delivery networking products that optimize the security, performance and availability of network applications, servers and storage systems. The Company’s geographical segments include the Americas (primarily the United States); Europe, the Middle East, and Africa (EMEA); Japan, and the Asia Pacific region (APAC). The Company’s Traffic Management Operating System (TMOS) based offerings include software products for local and global traffic management, network and application security, access management, Web acceleration and various network and application services. These products are available as modules that can run individually or as part of an integrated solution on the Company’s purpose-built BIG-IP appliances and VIPRION chassis-based hardware, or as software-only Virtual Editions.

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