Altaba (NASDAQ: AABA) and NetScout Systems (NASDAQ:NTCT) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Volatility & Risk
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Altaba has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500. Comparatively, NetScout Systems has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
Institutional and Insider Ownership
73.3% of Altaba shares are held by institutional investors. 24.0% of Altaba shares are held by insiders. Comparatively, 3.5% of NetScout Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Altaba and NetScout Systems’ revenue, earnings per share and valuation.
||Earnings Per Share
NetScout Systems has lower revenue, but higher earnings than Altaba.
This table compares Altaba and NetScout Systems’ net margins, return on equity and return on assets.
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This is a summary of recent ratings and recommmendations for Altaba and NetScout Systems, as provided by MarketBeat.
||Strong Buy Ratings
Altaba presently has a consensus target price of $82.00, suggesting a potential upside of 7.99%. NetScout Systems has a consensus target price of $27.80, suggesting a potential downside of 0.18%. Given Altaba’s stronger consensus rating and higher probable upside, equities analysts clearly believe Altaba is more favorable than NetScout Systems.
Altaba beats NetScout Systems on 9 of the 13 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.
About NetScout Systems
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.