Stratasys (NASDAQ: SSYS) and Avid Technology (OTCMKTS:AVID) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Stratasys and Avid Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stratasys 5 8 5 0 2.00
Avid Technology 0 1 0 0 2.00

Stratasys currently has a consensus price target of $24.21, suggesting a potential upside of 4.33%. Avid Technology has a consensus price target of $5.00, suggesting a potential upside of 8.93%. Given Avid Technology’s higher probable upside, analysts plainly believe Avid Technology is more favorable than Stratasys.

Earnings & Valuation

This table compares Stratasys and Avid Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stratasys $665.63 million 1.84 $30.05 million ($1.07) -21.69
Avid Technology $440.79 million 0.43 $46.85 million N/A N/A

Avid Technology has higher revenue, but lower earnings than Stratasys.

Institutional & Insider Ownership

67.0% of Stratasys shares are owned by institutional investors. 4.3% of Stratasys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Stratasys and Avid Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stratasys -8.33% 0.29% 0.24%
Avid Technology -10.58% N/A -18.29%

Summary

Stratasys beats Avid Technology on 9 of the 11 factors compared between the two stocks.

About Stratasys

Stratasys, Inc. is a manufacturer of three-dimensional (3D) printers and rapid prototyping (RP) systems for the office-based RP and direct digital manufacturing (DDM) markets. The Company develops, manufactures and sells a product line of 3D printers and DDM systems (and related consumable materials) that create physical models from computer-aided design (CAD) designs. It also offer rapid prototyping and production part manufacturing services through its centers located in North America, Europe and Australia. In January 2009, the Company introduced the uPrint Personal 3D Printer. In January 2009, it began offering a thermoplastic for direct digital manufacturing and rapid prototyping called ULTEM 9085.

About Avid Technology

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

Receive News & Ratings for Stratasys Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stratasys Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.