Contrasting Cray (CRAY) and Capcom (CCOEY)

Cray (NASDAQ: CRAY) and Capcom (OTCMKTS:CCOEY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Analyst Ratings

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This is a summary of current ratings and recommmendations for Cray and Capcom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cray 0 0 5 0 3.00
Capcom 0 1 0 0 2.00

Cray currently has a consensus target price of $27.20, suggesting a potential upside of 21.70%. Capcom has a consensus target price of $17.84, suggesting a potential upside of 77.51%. Given Capcom’s higher probable upside, analysts plainly believe Capcom is more favorable than Cray.

Profitability

This table compares Cray and Capcom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cray -34.10% -8.51% -6.11%
Capcom N/A N/A N/A

Dividends

Capcom pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Cray does not pay a dividend. Capcom pays out 22.2% of its earnings in the form of a dividend.

Risk and Volatility

Cray has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Capcom has a beta of -5.34, indicating that its stock price is 634% less volatile than the S&P 500.

Institutional & Insider Ownership

97.3% of Cray shares are owned by institutional investors. Comparatively, 0.0% of Capcom shares are owned by institutional investors. 4.0% of Cray shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Cray and Capcom’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cray $392.51 million 2.30 -$133.82 million ($1.01) -22.13
Capcom $806.32 million 2.73 $79.27 million $0.18 55.83

Capcom has higher revenue and earnings than Cray. Cray is trading at a lower price-to-earnings ratio than Capcom, indicating that it is currently the more affordable of the two stocks.

Summary

Capcom beats Cray on 10 of the 16 factors compared between the two stocks.

Cray Company Profile

Cray Inc., together with its subsidiaries, designs, develops, manufactures, markets, and services computing systems, and data analytics and artificial intelligence solutions. It operates through Supercomputing, Storage and Data Management, Maintenance and Support, and Engineering Services and Other segments. The company offers a range of Cray XC series supercomputers, including Cray XC40, Cray XC50, and Cray XC50-AC; Cray CS series supercomputers comprises Cray CS500 and Cray CS-Storm; and analytics products, such as Cray Urika-GX platform used for production-class big data analytics workloads. It also provides storage and data management products comprising cray clusterstor storage systems that embeds the Lustre parallel file system and other software in an optimal configuration; and Cray DataWarp applications accelerator, a DataWarp technology that addresses a problem experienced by supercomputing customers. In addition, the company offers custom engineering solutions; and customer support services consisting of hardware and software maintenance, applications support, installation project management, system installation and de-installation, site preparation, and technical training for its systems, as well as ancillary services in application consulting, third-party software support, site engineering, on-site analysts for defined projects, and specialized training. Cray Inc. sells its products through direct sales force and a partner network of global and regional resellers. It serves clients ranging from government agencies or funded research laboratories, academic institutions, and commercial entities in North America, South America, Asia, Europe, the Middle East, Australia, and Africa. The company was formerly known as Tera Computer Company and changed its name to Cray Inc. in 2000. Cray Inc. was founded in 1987 and is headquartered in Seattle, Washington.

Capcom Company Profile

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells package games and digital download content. This segment also develops and manages mobile contents and PC online games. The Arcade Operations segment operates ?Plaza Capcom? amusement facilities primarily in commercial complexes, and hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of frames and LCD devices for gaming machines, as well as software; and development, production, and sale of arcade games for amusement facilities. The Other Businesses segment publishes walkthrough and strategy guides, as well as game art books; licenses music CDs and merchandise; and develops game content into movies and animated television programs. The company was founded in 1979 and is headquartered in Osaka, Japan.

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