Critical Comparison: Avid Technology (AVID) & The Competition

Avid Technology (OTCMKTS: AVID) is one of 25 public companies in the “Computer Peripherals” industry, but how does it weigh in compared to its rivals? We will compare Avid Technology to related businesses based on the strength of its profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Avid Technology and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avid Technology -10.58% N/A -18.29%
Avid Technology Competitors -43.04% -19.17% -8.38%

Volatility and Risk

Avid Technology has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Avid Technology’s rivals have a beta of 0.90, indicating that their average stock price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Avid Technology and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Avid Technology N/A N/A -28.33
Avid Technology Competitors $1.24 billion $3.09 million -90.63

Avid Technology’s rivals have higher revenue and earnings than Avid Technology. Avid Technology is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Avid Technology and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Technology 0 1 0 0 2.00
Avid Technology Competitors 51 260 435 14 2.54

As a group, “Computer Peripherals” companies have a potential upside of 22.19%. Given Avid Technology’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Avid Technology has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

35.3% of shares of all “Computer Peripherals” companies are owned by institutional investors. 18.1% of shares of all “Computer Peripherals” companies are owned 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.

Summary

Avid Technology rivals beat Avid Technology on 8 of the 11 factors compared.

About Avid Technology

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

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