Financial Survey: RealNetworks (RNWK) vs. Citrix Systems (CTXS)
RealNetworks (NASDAQ: RNWK) and Citrix Systems (NASDAQ:CTXS) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
This is a summary of current ratings and recommmendations for RealNetworks and Citrix Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RealNetworks presently has a consensus target price of $6.50, suggesting a potential upside of 33.20%. Citrix Systems has a consensus target price of $88.00, suggesting a potential upside of 6.41%. Given RealNetworks’ stronger consensus rating and higher possible upside, equities analysts clearly believe RealNetworks is more favorable than Citrix Systems.
This table compares RealNetworks and Citrix Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
51.7% of RealNetworks shares are held by institutional investors. Comparatively, 93.0% of Citrix Systems shares are held by institutional investors. 37.9% of RealNetworks shares are held by insiders. Comparatively, 0.4% of Citrix Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares RealNetworks and Citrix Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RealNetworks||$126.19 million||1.44||-$17.23 million||($0.69)||-7.07|
|Citrix Systems||$3.44 billion||3.64||$987.12 million||$2.95||28.03|
Citrix Systems has higher revenue and earnings than RealNetworks. RealNetworks is trading at a lower price-to-earnings ratio than Citrix Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
RealNetworks has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Citrix Systems has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.
Citrix Systems beats RealNetworks on 10 of the 13 factors compared between the two stocks.
RealNetworks, Inc. creates applications and services that enable to connect with digital media. The Company connects consumers with their digital media directly and through partners, focusing on supporting various network, devices, media types and social networks. It operates through three segments: Consumer Media, Mobile Services and Games. Within its Consumer Media business, its RealPlayer media player software includes features and services that enable consumers to discover, play, download, manage and edit digital video, stream audio and video, download and save photos and videos from the Web, transfer and share content on social networks, and edit their own photo and video content. The Mobile Services segment consists of digital media services it provides to mobile and online service providers as software as a service offerings. It develops, publishes, licenses and distributes casual games.
About Citrix Systems
Citrix Systems, Inc. offers Enterprise and Service Provider products, which include Workspace Services solutions and Delivery Networking products. The Company’s Enterprise and Service Provider products include Cloud Services solutions, and related license updates and maintenance, support and professional services. The Company’s NetScaler nCore Technology is an architecture that enables execution of multiple packet engines in parallel. The Company’s workspace services include Application Virtualization and virtual desktop infrastructure (VDI), Enterprise Mobility Management and Citrix Workspace Suite. The Company’s NetScaler ADC is a software-defined application delivery controller (ADC) and load balancer. The Company’s Cloud Services include ShareFile and Citrix Cloud. It provides various ways for customers to receive upgrades, support and maintenance for products, which include Software Maintenance, Subscription Advantage, Technical Support Services and Hardware Maintenance.
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