New Relic (NYSE: NEWR) and ANSYS (NASDAQ:ANSS) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Volatility and Risk
New Relic has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, ANSYS has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
This table compares New Relic and ANSYS’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Relic||$263.48 million||12.14||-$61.07 million||($1.12)||-51.88|
|ANSYS||$988.47 million||12.58||$265.63 million||$3.18||46.08|
ANSYS has higher revenue and earnings than New Relic. New Relic is trading at a lower price-to-earnings ratio than ANSYS, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
77.2% of New Relic shares are owned by institutional investors. Comparatively, 96.8% of ANSYS shares are owned by institutional investors. 23.1% of New Relic shares are owned by insiders. Comparatively, 1.3% of ANSYS shares are owned by 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 table compares New Relic and ANSYS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for New Relic and ANSYS, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
New Relic presently has a consensus price target of $53.40, suggesting a potential downside of 8.11%. ANSYS has a consensus price target of $124.90, suggesting a potential downside of 14.77%. Given New Relic’s stronger consensus rating and higher possible upside, equities analysts clearly believe New Relic is more favorable than ANSYS.
ANSYS beats New Relic on 9 of the 13 factors compared between the two stocks.
About New Relic
New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.
ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.
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