Altaba (NASDAQ:AABA) and SofTech (OTCMKTS:SOFT) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
Earnings and Valuation
This table compares Altaba and SofTech’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Altaba||$5.17 billion||7.33||-$214.32 million||N/A||N/A|
Institutional & Insider Ownership
71.7% of Altaba shares are owned by institutional investors. 0.0% of Altaba shares are owned by insiders. Comparatively, 28.6% of SofTech 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.
This is a breakdown of recent ratings and price targets for Altaba and SofTech, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Altaba currently has a consensus target price of $95.80, indicating a potential upside of 52.35%. Given Altaba’s higher possible upside, equities analysts plainly believe Altaba is more favorable than SofTech.
Risk and Volatility
Altaba has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, SofTech has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
This table compares Altaba and SofTech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Altaba beats SofTech on 6 of the 8 factors compared between the two stocks.
Altaba Inc. operates as a non-diversified, closed-end management investment company in the United States. Its assets consist primarily of equity investments, short-term debt investments, and cash. The company was formerly known as Yahoo! Inc. and changed its name to Altaba Inc. in June 2017. Altaba Inc. was founded in 1994 and is based in New York, New York.
SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation's Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.
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