Guidance Software (GUID) vs. Actua Corporation (ACTA) Head-To-Head Review

Guidance Software (NASDAQ: GUID) and Actua Corporation (NASDAQ:ACTA) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Guidance Software and Actua Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guidance Software 0 3 4 0 2.57
Actua Corporation 0 1 0 0 2.00

Guidance Software currently has a consensus target price of $8.35, indicating a potential upside of 18.10%. Actua Corporation has a consensus target price of $17.00, indicating a potential upside of 10.39%. Given Guidance Software’s stronger consensus rating and higher probable upside, equities analysts plainly believe Guidance Software is more favorable than Actua Corporation.

Volatility & Risk

Guidance Software has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Actua Corporation has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.

Insider and Institutional Ownership

51.8% of Guidance Software shares are held by institutional investors. Comparatively, 74.7% of Actua Corporation shares are held by institutional investors. 38.1% of Guidance Software shares are held by company insiders. Comparatively, 10.2% of Actua Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Guidance Software and Actua Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Guidance Software $108.61 million 1.99 -$971,000.00 ($0.25) -28.28
Actua Corporation $118.96 million 4.01 -$22.10 million $2.15 7.16

Guidance Software has higher revenue, but lower earnings than Actua Corporation. Guidance Software is trading at a lower price-to-earnings ratio than Actua Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Guidance Software and Actua Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guidance Software -4.73% -559.09% -6.73%
Actua Corporation 67.78% -5.42% -4.26%

Summary

Actua Corporation beats Guidance Software on 8 of the 13 factors compared between the two stocks.

About Guidance Software

Guidance Software, Inc. is a technology company. The Company is a provider of endpoint investigation solutions for cybersecurity analytics, security incident response, e-discovery, data privacy and forensic analysis. The Company has five segments, which include Products, Subscription, Professional services, Training and Maintenance. The Company’s Products segment includes EnCase, EnCase Endpoint Security, EnCase eDiscovery, EnCase Forensic, EnCase Portable, Premium License Support Program and hardware sales. Its Subscription segment includes subscription services for cloud-based document review and production software. Its Professional services segment performs consulting services and implementations. Its Training segment provides training classes, by which the Company trains its customers to use its software products. Its maintenance segment provides software updates, telephone and e-mail support.

About Actua Corporation

Actua Corporation, formerly ICG Group, Inc., is a multi-vertical cloud technology company. The Company operates through two segments, which include the vertical cloud segment and the vertical cloud (venture) segment. The Company’s vertical cloud-based businesses include Bolt Solutions Inc. (Bolt), Folio Dynamics Holdings Inc. (FolioDynamix), GovDelivery Holdings, Inc. (GovDelivery) and VelocityEHS Holdings, Inc. (VelocityEHS), which operate in the commercial and personal property and casualty insurance, wealth management, government communications and environmental, health and safety (EH&S) markets, respectively. The vertical cloud (venture) businesses include InstaMed Holdings, Inc. (InstaMed) and Parchment Inc. (Parchment), which operate a cloud-based healthcare payments network and an education credentials technology, respectively.

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