Avid Technology (AVID) versus Its Peers Critical Comparison
Avid Technology (OTCMKTS: AVID) is one of 25 publicly-traded companies in the “Computer Peripherals” industry, but how does it weigh in compared to its peers? We will compare Avid Technology to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, analyst recommendations, risk and earnings.
Volatility and Risk
Avid Technology has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Avid Technology’s peers have a beta of 0.86, meaning that their average stock price is 14% less volatile than the S&P 500.
This table compares Avid Technology and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avid Technology Competitors||-42.83%||-18.73%||-8.32%|
Institutional and Insider Ownership
35.3% of shares of all “Computer Peripherals” companies are owned by institutional investors. 18.1% of shares of all “Computer Peripherals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Avid Technology and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avid Technology Competitors||51||260||432||13||2.54|
Avid Technology currently has a consensus target price of $5.00, suggesting a potential upside of 17.37%. As a group, “Computer Peripherals” companies have a potential upside of 19.92%. Given Avid Technology’s peers stronger consensus rating and higher probable upside, analysts clearly believe Avid Technology has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares Avid Technology and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Avid Technology Competitors||$1.24 billion||$3.09 million||-26.69|
Avid Technology’s peers have higher revenue and earnings than Avid Technology. Avid Technology is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Avid Technology peers beat Avid Technology on 8 of the 11 factors compared.
Avid Technology Company Profile
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.
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