Financial Contrast: RadiSys (RSYS) & Quantum (QTM)
RadiSys (NASDAQ: RSYS) and Quantum (NYSE:QTM) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Volatility and Risk
RadiSys has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Quantum has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500.
This table compares RadiSys and Quantum’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares RadiSys and Quantum’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RadiSys||$212.39 million||0.16||-$10.25 million||($0.95)||-0.93|
|Quantum||$505.35 million||0.36||$3.64 million||($0.24)||-22.17|
Quantum has higher revenue and earnings than RadiSys. Quantum is trading at a lower price-to-earnings ratio than RadiSys, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for RadiSys and Quantum, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RadiSys currently has a consensus price target of $3.60, suggesting a potential upside of 309.09%. Quantum has a consensus price target of $10.00, suggesting a potential upside of 87.97%. Given RadiSys’ higher possible upside, research analysts plainly believe RadiSys is more favorable than Quantum.
Insider & Institutional Ownership
57.2% of RadiSys shares are owned by institutional investors. Comparatively, 66.1% of Quantum shares are owned by institutional investors. 6.1% of RadiSys shares are owned by company insiders. Comparatively, 8.6% of Quantum shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Quantum beats RadiSys on 10 of the 12 factors compared between the two stocks.
Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.
Quantum Corporation focuses on scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing and preserving digital assets over the entire data lifecycle. The Company’s end-to-end tiered storage solutions enable users to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. It works with a network of distributors, value-added resellers (VARs), direct marketing resellers (DMRs), original equipment manufacturers (OEMs) and other suppliers to meet customers’ evolving needs. Its scale-out storage portfolio includes StorNext software, appliances and full systems called StorNext Pro Solutions, as well as Xcellis workflow storage, QXS disk storage, Lattus extended online storage and Q-Cloud Archive and Vault services. Its StorNext offerings enable customers to manage large unstructured data sets in an information workflow.
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