Critical Review: ANSYS (ANSS) versus YuMe (YUME)

YuMe (NYSE: YUME) and ANSYS (NASDAQ:ANSS) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Valuation & Earnings

This table compares YuMe and ANSYS’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YuMe $160.41 million 0.80 -$7.72 million $0.10 36.60
ANSYS $988.47 million 12.57 $265.63 million $3.18 46.03

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

Risk & Volatility

YuMe has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, ANSYS has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares YuMe and ANSYS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
YuMe 5.25% 10.01% 6.37%
ANSYS 26.01% 13.67% 10.86%

Dividends

YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 3.3%. ANSYS does not pay a dividend. YuMe pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

48.0% of YuMe shares are owned by institutional investors. Comparatively, 97.0% of ANSYS shares are owned by institutional investors. 29.3% of YuMe shares are owned by company insiders. Comparatively, 1.3% of ANSYS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for YuMe and ANSYS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YuMe 0 1 0 0 2.00
ANSYS 2 9 1 0 1.92

ANSYS has a consensus price target of $124.90, suggesting a potential downside of 14.68%. Given ANSYS’s higher probable upside, analysts plainly believe ANSYS is more favorable than YuMe.

Summary

ANSYS beats YuMe on 13 of the 16 factors compared between the two stocks.

YuMe Company Profile

YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.

ANSYS Company Profile

ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.

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