VMware (NYSE: VMW) and ARI Network Services (NASDAQ:ARIS) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
21.9% of VMware shares are owned by institutional investors. Comparatively, 36.1% of ARI Network Services shares are owned by institutional investors. 34.4% of VMware shares are owned by insiders. Comparatively, 8.7% of ARI Network Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares VMware and ARI Network Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VMware||$7.09 billion||6.63||$1.19 billion||$3.50||33.31|
|ARI Network Services||N/A||N/A||N/A||$0.14||50.64|
VMware has higher revenue and earnings than ARI Network Services. VMware is trading at a lower price-to-earnings ratio than ARI Network Services, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
VMware has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, ARI Network Services has a beta of -1.88, indicating that its share price is 288% less volatile than the S&P 500.
This is a summary of current ratings and price targets for VMware and ARI Network Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARI Network Services||1||1||0||0||1.50|
VMware currently has a consensus target price of $129.83, suggesting a potential upside of 11.37%. Given VMware’s stronger consensus rating and higher possible upside, equities analysts clearly believe VMware is more favorable than ARI Network Services.
This table compares VMware and ARI Network Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARI Network Services||11.55%||18.27%||9.56%|
VMware beats ARI Network Services on 9 of the 12 factors compared between the two stocks.
VMware Company Profile
VMware, Inc. is an information technology (IT) company. The Company is engaged in development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The Company offers various products, which allow organizations to manage IT resources across private clouds and multi-cloud, multi-device environments by leveraging synergies across three product categories: Software-Defined Data Center (SDDC), Hybrid Cloud Computing and End-User Computing (EUC). The SDDC is designed to transform and modernize the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware. The Company provides many storage and availability products to offer data storage and protection options to all applications running on the vSphere platform.
ARI Network Services Company Profile
ARI Network Services, Inc. (ARI) provides Website, software and data solutions. The Company’s solutions include Lead Generation and eCommerce Websites, eCatalogs, Business Management Software, Digital Marketing Services. It offers a menu of Website add-ons, including a mobile inventory management application, third-party inventory integrations and business management integrations. Its eCatalog solutions offer access to its library of electronic product content through a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) solutions. Its Business Management Software solutions are offered in the automotive tire and wheel aftermarket (ATW) aftermarket under the TCS Technologies, an ARI Company brand name. ARI’s Digital Marketing Services include search engine optimization, e-mail marketing, search engine marketing (PPC), online reputation management and online directory management. The Company’s other solutions include software, professional services and hosting services.
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