Contrasting Avid Technology (AVID) and Its Peers

Avid Technology (NASDAQ: AVID) is one of 20 publicly-traded companies in the “Computer Peripherals” industry, but how does it contrast to its rivals? We will compare Avid Technology to related companies based on the strength of its institutional ownership, profitability, analyst recommendations, earnings, valuation, dividends and risk.

Valuation and Earnings

This table compares Avid Technology and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Avid Technology $511.93 million $48.21 million -36.78
Avid Technology Competitors $1.12 billion $5.60 million -114.54

Avid Technology’s rivals have higher revenue, but lower earnings than Avid Technology. Avid Technology is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Avid Technology and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Technology 0 1 0 0 2.00
Avid Technology Competitors 50 252 412 14 2.54

As a group, “Computer Peripherals” companies have a potential upside of 14.92%. Given Avid Technology’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Avid Technology has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

72.1% of Avid Technology shares are held by institutional investors. Comparatively, 39.1% of shares of all “Computer Peripherals” companies are held by institutional investors. 7.5% of Avid Technology shares are held by company insiders. Comparatively, 17.3% of shares of all “Computer Peripherals” companies are held by company 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.

Profitability

This table compares Avid Technology and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avid Technology -1.75% -5.36% 6.12%
Avid Technology Competitors -258.49% -17.91% -8.72%

Risk and Volatility

Avid Technology has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Avid Technology’s rivals have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.

Summary

Avid Technology beats its rivals on 7 of the 13 factors compared.

Avid Technology Company Profile

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

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