RealNetworks (RNWK) & Aspen Technology (AZPN) Head-To-Head Contrast

RealNetworks (NASDAQ: RNWK) and Aspen Technology (NASDAQ:AZPN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Risk and Volatility

RealNetworks has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Aspen Technology has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares RealNetworks and Aspen Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RealNetworks -11.87% -21.20% -14.36%
Aspen Technology 33.19% -61.04% 73.96%

Institutional and Insider Ownership

53.7% of RealNetworks shares are owned by institutional investors. Comparatively, 98.1% of Aspen Technology shares are owned by institutional investors. 37.9% of RealNetworks shares are owned by insiders. Comparatively, 0.8% of Aspen Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares RealNetworks and Aspen Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RealNetworks $78.72 million 1.75 -$16.30 million N/A N/A
Aspen Technology $482.94 million 13.95 $162.19 million $2.11 44.72

Aspen Technology has higher revenue and earnings than RealNetworks.

Analyst Ratings

This is a summary of current ratings and target prices for RealNetworks and Aspen Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealNetworks 0 0 1 0 3.00
Aspen Technology 2 2 3 0 2.14

RealNetworks presently has a consensus price target of $6.50, suggesting a potential upside of 77.60%. Aspen Technology has a consensus price target of $81.86, suggesting a potential downside of 13.24%. Given RealNetworks’ stronger consensus rating and higher possible upside, analysts plainly believe RealNetworks is more favorable than Aspen Technology.

Summary

Aspen Technology beats RealNetworks on 8 of the 12 factors compared between the two stocks.

RealNetworks Company Profile

RealNetworks, Inc. provides network-delivered digital media applications and services to manage, play, and share digital media. Its Consumer Media segment offers RealPlayer media player software, which enables consumers to discover, play, download, manage and edit digital video, stream audio and video, download and save photos and videos from the Web, transfer and share content on social networks, and edit their own photo and video content. This segment also licenses its technology to electronic equipment, microchip, and integrated circuit manufacturers. The company's Mobile Services segment provides digital media services to mobile and online service providers as software as a service offerings, which include RealTimes, a photo and video sharing platform, offers to wireless carriers for integration in their hosted cloud solutions; Kontxt, a text message management, anti-spam, and classification product; ringback tone that enables callers to hear subscriber-selected music or messages instead of the traditional electronic ringing; intercarrier messaging services; and business intelligence, and subscriber management and billing for the carriers. Its Games segment develops, publishes, and distributes casual games, including time-management, board, card, puzzle, word, and hidden-object games. It offers its casual games through mobile devices, digital downloads, and subscription play. The company also develops and markets software products and services that enable the creation, distribution, and consumption of digital media, including audio and video. The company provides its products and services through direct and indirect channels comprising public relations, trade shows, events, and speaking opportunities; online channels; third party distribution partners; and third-party distribution channels, such as application storefronts, search engines, online portals, and content publishers. RealNetworks, Inc. was founded in 1994 and is headquartered in Seattle, Washington.

Aspen Technology Company Profile

Aspen Technology, Inc., together with its subsidiaries, provides software and services in the United States, Europe, and internationally. It operates through two segments, Subscription and Software, and Services. It supplies asset optimization solutions that optimize asset design, operations, and maintenance lifecycle in various industrial environments. The company's software suites include aspenONE Engineering, aspenONE Manufacturing and Supply Chain, and aspenONE Asset Performance Management, which are integrated applications that allow end users to design process manufacturing environments, forecast and simulate potential actions, monitor operational performances, predict the reliability of an asset and equipment failure, and manage planning and scheduling activities, as well as collaborate across these functions and activities. It also provides software maintenance and support, professional, and training services. The company's customers include companies that are engaged in the process and other industries, including energy, chemicals, engineering, and construction, as well as pharmaceuticals, transportation, power, metals and mining, pulp and paper, and consumer packaged goods. Aspen Technology, Inc. was founded in 1981 and is headquartered in Bedford, Massachusetts.

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