Crossroads Systems (OTCMKTS: CRDSQ) and Avid Technology (NASDAQ:AVID) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Earnings and Valuation
This table compares Crossroads Systems and Avid Technology’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Avid Technology||$511.93 million||0.45||$48.21 million||($0.18)||-31.39|
Insider and Institutional Ownership
7.5% of Crossroads Systems shares are held by institutional investors. Comparatively, 71.8% of Avid Technology shares are held by institutional investors. 27.4% of Crossroads Systems shares are held by insiders. Comparatively, 7.5% of Avid Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Crossroads Systems has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500. Comparatively, Avid Technology has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.
This table compares Crossroads Systems and Avid Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings for Crossroads Systems and Avid Technology, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avid Technology has a consensus target price of $4.50, indicating a potential downside of 20.35%. Given Avid Technology’s higher probable upside, analysts plainly believe Avid Technology is more favorable than Crossroads Systems.
Avid Technology beats Crossroads Systems on 7 of the 10 factors compared between the two stocks.
About Crossroads Systems
Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.
About Avid Technology
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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