Datalink (NASDAQ: DTLK) and Altair Engineering (NASDAQ:ALTR) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Datalink and Altair Engineering, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Datalink 0 0 0 0 N/A
Altair Engineering 0 3 2 0 2.40

Altair Engineering has a consensus price target of $26.00, suggesting a potential upside of 8.70%.

Insider & Institutional Ownership

73.8% of Datalink shares are held by institutional investors. 11.9% of Datalink shares are held by insiders. Comparatively, 0.7% of Altair Engineering shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Datalink and Altair Engineering’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Datalink N/A N/A N/A $0.31 N/A
Altair Engineering $313.24 million 4.80 $10.16 million ($0.55) -43.49

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

Profitability

This table compares Datalink and Altair Engineering’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Datalink 0.30% 1.32% 0.44%
Altair Engineering N/A N/A N/A

Summary

Datalink beats Altair Engineering on 7 of the 9 factors compared between the two stocks.

About Datalink

Datalink Corporation is a provider of information technology (IT) services and solutions. The Company provides a full life cycle of services, including consulting, strategy, design, deploy, manage and support. The Company leverages technology from the original equipment manufacturers (OEMs) as part of its IT solutions portfolio. Its portfolio of solutions and services spans approximately four areas, such as cloud, data center transformation, next-generation technology and security. The Company’s cloud services provide a foundation for services delivery models, such as IT as a service (ITaaS). These services include assessment and readiness workshops, security and migration strategies, automation, orchestration, Datalink Cloud Complete, DR Testing and X (anything) As A Service (XaaS). Its data center transformation portfolio includes technical infrastructure strategy and roadmaps, cloud strategies, IT process and management, IT operational outsourcing and managed services strategies.

About Altair Engineering

Altair Engineering Inc. is a United States-based software company. The Company is focused on developing engineering software and computing technologies. The Company’s products include HyperWorks, solidThinking, PBS Works, and Carriots. The Company offers a range of solutions such as product engineering, industrial design, and tailored solutions. The Company provides open CAE software solutions for modeling, visualization, optimization and process automation. Altair’s grid computing software, PBS Pro, is a workload management solution for computing environments, LINUX clusters and desktop cycle harvesting.

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