Reviewing VMware (NYSE:VMW) & Amber Road (NYSE:AMBR)

VMware (NYSE:VMW) and Amber Road (NYSE:AMBR) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

17.8% of VMware shares are owned by institutional investors. Comparatively, 79.7% of Amber Road shares are owned by institutional investors. 28.8% of VMware shares are owned by insiders. Comparatively, 15.1% of Amber Road shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

VMware has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Amber Road has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500.

Valuation & Earnings

This table compares VMware and Amber Road’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VMware $8.97 billion 6.55 $2.42 billion $4.93 29.15
Amber Road $85.17 million 4.45 -$13.60 million ($0.49) -26.63

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

Profitability

This table compares VMware and Amber Road’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VMware 21.50% 36.48% 10.62%
Amber Road -12.49% -33.06% -9.60%

Analyst Recommendations

This is a summary of recent ratings and price targets for VMware and Amber Road, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VMware 2 7 14 0 2.52
Amber Road 0 3 0 0 2.00

VMware presently has a consensus price target of $192.90, indicating a potential upside of 34.22%. Amber Road has a consensus price target of $12.95, indicating a potential downside of 0.77%. Given VMware’s stronger consensus rating and higher possible upside, research analysts clearly believe VMware is more favorable than Amber Road.

Summary

VMware beats Amber Road on 13 of the 14 factors compared between the two stocks.

VMware Company Profile

VMware, Inc. provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally. The company offers compute products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions. It also provides networking and security products and services that enable customers to connect, secure, and operate their network consistently within and across the data center, cloud, and network edges; and storage and availability products, including data storage and protection options. In addition, the company offers VMware Cloud Foundation, a platform that brings together its compute, storage, and networking technologies into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds; and VMware Pulse IoT Center, an Internet of Things device management and monitoring solution. Further, it provides hybrid cloud computing solutions, such as VMware Cloud Provider Program, VMware Cloud Foundation, and VMware Cloud Services; and end-user computing solutions, such as Workspace ONE that delivers and manages any application on any device by integrating access control, application management, and multi-platform endpoint management. The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has a strategic alliance with Amazon Web Services to build and deliver an integrated hybrid solution. The company was incorporated in 1998 and is headquartered in Palo Alto, California. VMware, Inc. is a subsidiary of Dell Technologies Inc.

Amber Road Company Profile

Amber Road, Inc. provides cloud-based global trade management (GTM) solutions in the United States and internationally. The company's GTM solutions include modules, such as import management, export management, China trade management, global logistics management, trade agreement management, and supply chain collaboration, as well as professional services, such as assessment, implementation, education and training, and maintenance and support. It provides modules for logistics contract and rate management; supply chain visibility and event management; international trade compliance; and global knowledge trade content database, supply chain collaboration with international factories and vendors, and duty management solutions to importers and exporters, nonvessel owning common carriers (resellers), and ocean carriers. The company offers its solution to various industries comprising chemical/pharmaceutical, high technology/electronics, industrial/manufacturing, logistics, oil and gas, and retail/apparel through a software-as-a-service model. The company was formerly known as Management Dynamics Inc. and changed its name to Amber Road, Inc. in 2011. Amber Road, Inc. was founded in 1990 and is headquartered in East Rutherford, New Jersey.

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