NetScout Systems (NASDAQ: NTCT) and Quality Systems (NASDAQ:QSII) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Valuation & Earnings
This table compares NetScout Systems and Quality Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NetScout Systems||$986.79 million||2.41||$79.81 million||$0.99||27.58|
|Quality Systems||$509.62 million||1.84||$18.24 million||$0.74||19.86|
NetScout Systems has higher revenue and earnings than Quality Systems. Quality Systems is trading at a lower price-to-earnings ratio than NetScout Systems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
72.6% of Quality Systems shares are held by institutional investors. 3.5% of NetScout Systems shares are held by company insiders. Comparatively, 17.9% of Quality Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
NetScout Systems has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Quality Systems has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for NetScout Systems and Quality Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NetScout Systems currently has a consensus price target of $27.80, suggesting a potential upside of 1.83%. Quality Systems has a consensus price target of $14.50, suggesting a potential downside of 1.36%. Given NetScout Systems’ stronger consensus rating and higher possible upside, research analysts plainly believe NetScout Systems is more favorable than Quality Systems.
This table compares NetScout Systems and Quality Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NetScout Systems beats Quality Systems on 10 of the 14 factors compared between the two stocks.
NetScout Systems Company Profile
NetScout Systems, Inc. provides real-time operational intelligence and performance analytics for service assurance, and cybersecurity solutions in the United States, Europe, Asia, and internationally. The company offers nGeniusONE management software that enables customers to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules that enable its customers to analyze and troubleshoot traffic in radio access and WiFi networks, as well as gain timely insight into services, applications, and systems. It also provides Intelligent Data Sources under the Infinistream brand name that provide real-time collection and analysis of data from the network; packet flow switching solutions that delivers targeted network traffic access to an increasing number of monitoring and security systems; and a suite of test access points that enable non-disruptive access to network traffic with multiple link type and speed options. In addition, the company offers portable network analysis and troubleshooting tools, which help customers identify key issues that impact network and application performance. Further, it provides security solutions that enable service providers and enterprises to protect their networks against DDoS attacks; and threat detection solutions that enable enterprises to identify and investigate advanced threat campaigns that present tangible risks to the integrity of their networks. The company serves enterprise customers in industries, such as financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail; mobile operators, wireline operators, and cable operators; and governmental agencies through a direct sales force, and indirect reseller and distribution channels. NetScout Systems, Inc. was founded in 1984 and is headquartered in Westford, Massachusetts.
Quality Systems Company Profile
Quality Systems, Inc., together with its subsidiaries, develops and markets software and services that automate various aspects of practice management (PM) and electronic health records for medical and dental practices in the United States. The company's NextGen division provides integrated clinical, financial, and connectivity solutions for ambulatory and dental provider organizations. Its principal products include the NextGen Ambulatory product suite; interoperability solutions; and MediTouch, a cloud-based software suite comprising clearinghouse, PM, electronic health records, and patient portals, which enable mobility, workflow automation, and reporting and analytics. Its RCM Services Division offers technology-based solutions that are designed to optimize clients' revenue cycle costs and process efficiency, as well as to enhance clients' cash flow. This division provides revenue cycle management optimization services; and billing and collections, claims submissions and reconciliation, electronic remittance and payment posting, accounts receivable management, patient client service, advance analytics, charge entry and capture, enrollment credentialing, and software setup, hosting, and support services. The company's QSI Dental division focuses on developing, marketing, and supporting software suites for dental group organizations. This division also offers QSIDental Web, a cloud-based and software as a service and PM clinical software solution; and sells licenses to its products. The company also provides software implementation, training, support, and maintenance services; and electronic data interchange services. It serves single and small practice physicians, physician hospital organizations, management service organizations, accountable care organizations, ambulatory care centers, community health centers, and medical and dental schools through a sales force and a reseller channel. The company was founded in 1974 and is headquartered in Irvine, California.
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