Avid Technology (NASDAQ: AVID) and Qumu (NASDAQ:QUMU) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares Avid Technology and Qumu’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avid Technology $511.93 million 0.53 $48.21 million ($0.18) -36.78
Qumu $31.68 million 0.71 -$11.17 million ($0.96) -2.51

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

Profitability

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

Net Margins Return on Equity Return on Assets
Avid Technology -1.75% -5.36% 6.12%
Qumu -28.91% -56.82% -22.32%

Institutional & Insider Ownership

72.1% of Avid Technology shares are held by institutional investors. Comparatively, 23.8% of Qumu shares are held by institutional investors. 7.5% of Avid Technology shares are held by company insiders. Comparatively, 11.2% of Qumu shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Avid Technology has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Qumu has a beta of -0.57, meaning that its stock price is 157% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Avid Technology and Qumu, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Technology 0 1 0 0 2.00
Qumu 0 0 0 0 N/A

Summary

Avid Technology beats Qumu on 8 of the 10 factors compared between the two stocks.

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.

Qumu Company Profile

Qumu Corporation (Qumu) is an enterprise video content management software company. The Company is engaged in providing tools businesses need to create, manage, secure, deliver and measure their videos. The Company operates through the enterprise video content management software business segment. Its video content management software solutions allow organizations to create, capture, organize and deliver content across the extended enterprise to a range of end points, including mobile devices and thick or thin clients. Qumu’s video platform supports both live and on-demand streaming. The Qumu platform is a video content management software solution that can be deployed as a perpetual software license, a term software license or a cloud-hosted software as a service (SaaS). Qumu Capture Studio is a portable software-enabled device that records, edits and publishes video and presentation content.

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