Avid Technology (NASDAQ: AVID) is one of 20 publicly-traded companies in the “Computer Peripherals” industry, but how does it compare to its competitors? We will compare Avid Technology to related businesses based on the strength of its institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Volatility & Risk
Avid Technology has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Avid Technology’s competitors have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.
Valuation and Earnings
This table compares Avid Technology and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Avid Technology||$511.93 million||$48.21 million||-33.05|
|Avid Technology Competitors||$1.12 billion||$5.60 million||-115.57|
Avid Technology’s competitors have higher revenue, but lower earnings than Avid Technology. Avid Technology is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This table compares Avid Technology and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avid Technology Competitors||-258.66%||-18.05%||-8.83%|
Insider and Institutional Ownership
71.8% 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 insiders. Comparatively, 17.3% of shares of all “Computer Peripherals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Avid Technology and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avid Technology Competitors||51||252||413||14||2.53|
Avid Technology presently has a consensus price target of $4.50, indicating a potential downside of 24.37%. As a group, “Computer Peripherals” companies have a potential upside of 17.17%. Given Avid Technology’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Avid Technology has less favorable growth aspects than its competitors.
Avid Technology beats its competitors 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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