Rosetta Stone (NYSE: RST) and BOX (NYSE:BOX) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Earnings and Valuation

This table compares Rosetta Stone and BOX’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rosetta Stone $194.09 million 1.42 -$27.55 million ($0.42) -29.40
BOX $398.61 million 6.98 -$151.78 million ($1.20) -17.33

Rosetta Stone has higher earnings, but lower revenue than BOX. Rosetta Stone is trading at a lower price-to-earnings ratio than BOX, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rosetta Stone and BOX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rosetta Stone -4.97% -926.26% -3.43%
BOX -33.20% -270.51% -33.36%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rosetta Stone and BOX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosetta Stone 0 0 1 0 3.00
BOX 0 2 12 0 2.86

Rosetta Stone presently has a consensus target price of $15.00, suggesting a potential upside of 21.46%. BOX has a consensus target price of $24.00, suggesting a potential upside of 15.38%. Given Rosetta Stone’s stronger consensus rating and higher possible upside, equities analysts clearly believe Rosetta Stone is more favorable than BOX.

Volatility & Risk

Rosetta Stone has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, BOX has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Institutional and Insider Ownership

72.2% of Rosetta Stone shares are held by institutional investors. Comparatively, 63.4% of BOX shares are held by institutional investors. 13.0% of Rosetta Stone shares are held by company insiders. Comparatively, 22.3% of BOX shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Rosetta Stone beats BOX on 7 of the 13 factors compared between the two stocks.

About Rosetta Stone

Rosetta Stone Inc. (Rosetta Stone) offers personalized language and reading programs. The Company’s solutions are used by schools, businesses, government organizations and individuals around the world. Its segments include Enterprise & Education, which derives revenues from sales to educational institutions, corporations and government agencies worldwide, and Consumer, which derives revenue from sales to individuals and retail partners. Its cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, corporate setting, or personal learning environment. Its Fit Brains business offers personalized brain training programs. The Company offers courses in over 30 languages across formats, including Web-based software subscriptions, digital downloads, mobile applications, and perpetual compact disc packages. It also offers a portfolio of technology-based learning products for personal use to the global consumer.

About BOX

Box, Inc. provides an enterprise content management platform that enables organizations of all sizes to manage enterprise content while allowing access and sharing of this content from anywhere, on any device. With the Company’s Software-as-a-Service (SaaS) cloud-based platform, users can collaborate on content both internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security and compliance features to comply with internal policies and industry regulations. Its platform enables people to view, share and collaborate on content, across various file formats and media types. The software integrates with enterprise business applications, and is compatible with various application environments, operating systems and devices, ensuring that workers have access to their business content. It offers individuals a free basic version of the Box platform that allows them to experience its solution.

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