Rosetta Stone (RST) versus Cyren (CYRN) Head to Head Survey

Rosetta Stone (NYSE: RST) and Cyren (NASDAQ:CYRN) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

73.8% of Rosetta Stone shares are held by institutional investors. Comparatively, 60.8% of Cyren shares are held by institutional investors. 12.8% of Rosetta Stone shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Rosetta Stone and Cyren’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rosetta Stone -4.68% N/A -6.69%
Cyren -62.86% -47.17% -30.31%

Earnings and Valuation

This table compares Rosetta Stone and Cyren’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rosetta Stone $184.59 million 1.98 -$1.54 million ($0.23) -70.35
Cyren $30.80 million 4.97 -$15.64 million ($0.35) -8.19

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

Analyst Recommendations

This is a summary of current ratings and price targets for Rosetta Stone and Cyren, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosetta Stone 0 0 2 0 3.00
Cyren 0 0 0 0 N/A

Rosetta Stone presently has a consensus target price of $16.50, suggesting a potential upside of 1.98%. Given Rosetta Stone’s higher probable upside, analysts clearly believe Rosetta Stone is more favorable than Cyren.

Risk & Volatility

Rosetta Stone has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Cyren has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Summary

Rosetta Stone beats Cyren on 10 of the 13 factors compared between the two stocks.

About Rosetta Stone

Rosetta Stone Inc., together with its subsidiaries, provides technology-based learning products in the United States and internationally. It operates through three segments: Literacy, E&E Language, and Consumer Language. The company develops, markets, and supports a suite of language-learning, literacy, and brain fitness solutions consisting of Web-based software subscriptions, perpetual software products, online and professional services, audio practice products, and mobile applications. It also provides administrative tools for performance monitoring, and to measure and track learner progress; and custom solutions, including curriculum development, global collaboration programs, group and live tutoring, and language courses for mission-critical government programs. The company offers its courses in approximately 30 languages under the Rosetta Stone, The Blue Stone Logo, Lexia, Lexia PowerUP Literacy, TruAccent, and Catalyst brand names. It sells its products and services through call centers, Websites, app-stores, third party e-commerce Websites, select retail resellers, consignment distributors, daily deal partners, and third-party resellers, as well as directly to individuals, educational institutions, corporations, and government agencies. Rosetta Stone Inc. was founded in 1992 and is headquartered in Arlington, Virginia.

About Cyren

CYREN Ltd., together with its subsidiaries, provides information security solutions for protecting Web, email, and mobile transactions in the United States, Germany, Europe, Asia, Israel, and internationally. The company offers CYREN WebSecurity, a solution for cloud-based protection of its customer's devices against Web-borne threats; CYREN EmailSecurity that frees inboxes of spam, malware, and phishing threats without blocking important business messages; and Cyber Intelligence Suite, which delivers protection from malicious IP's, phishing attacks, and malware outbreaks. It also provides CYREN Inbound AntiSpam that allows real-time blocking of spam and phishing in various languages or formats; CYREN Outbound AntiSpam to neutralize spam originating from within a customer's infrastructure; CYREN Embedded Antimalware, which provides protection against new and zero-hour threats; and Embedded URL Filtering Solutions to combat Web threats with a URL categorization service. The company sells its products to original equipment manufacturer (OEM) and service provider customers. It offers its solutions to OEM and service provider distribution partners, including network and security vendors offering content security gateways, unified threat management solutions, network appliances, and antivirus solutions, as well as service providers, such as software-as-a-service vendors, Web hosting providers, and Internet service providers. The company was formerly known as Commtouch Software Ltd. and changed its name to CYREN Ltd. in January 2014. CYREN Ltd. was founded in 1991 and is headquartered in McLean, Virginia.

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