Xura (NASDAQ: MESG) and Gartner (NYSE:IT) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares Xura and Gartner’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xura N/A N/A N/A $6.67 3.74
Gartner $2.75 billion 4.13 $373.34 million $0.55 227.84

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

Insider and Institutional Ownership

92.1% of Gartner shares are held by institutional investors. 4.3% of Gartner shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Xura has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Gartner has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Xura and Gartner’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xura -37.80% -54.10% -12.53%
Gartner 1.50% 103.10% 6.92%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Xura and Gartner, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xura 0 0 0 0 N/A
Gartner 0 4 4 1 2.67

Gartner has a consensus price target of $127.63, suggesting a potential upside of 1.85%. Given Gartner’s higher possible upside, analysts plainly believe Gartner is more favorable than Xura.

Summary

Gartner beats Xura on 10 of the 11 factors compared between the two stocks.

About Xura

Xura, Inc. (Xura) is a United States-based provider of digital communications services. The Company offers a portfolio of digital services solutions that enable global communications across a range of mobile devices and platforms. Its digital communications services include Xura Network Function Virtualization (NFV), Xura Rich Communications Suite (RCS), Xura Signaling Fraud Management, Xura Telco-Web Gateways, Xura Communications Suite and Xura Message Controller. Its monetization services include low credit services and value added services. The Company helps communication service providers (CSPs) and enterprises to navigate and monetize the digital ecosystem through its cloud-based offerings. It also offers Rich Web and Mobile Application Development Framework. The Company helps operators around the world to secure their networks and protect their customers. The Company offers its solutions to people through service providers and enterprises in approximately 140 countries.

About Gartner

Gartner, Inc. is an information technology research and advisory company. The Company works with clients to research, analyze and interpret the business of information technology (IT), supply chain and marketing within the context of their individual roles. It operates in three segments: Research, Consulting and Events. Research segment consists of subscription-based research products, access to research inquiry, peer networking services and membership programs. Consulting segment consists of consulting, measurement engagements and strategic advisory services. Events segment consists of various symposia, conferences and exhibitions. It provides insight through reports, briefings, tools, access to its analysts, peer networking services and membership programs that enable its clients to make decisions about their IT, supply chain and digital marketing initiatives. Its consultants provide fact-based consulting services to help clients use and manage IT to optimize business performance.

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