Reviewing ANSYS (ANSS) and YuMe (YUME)

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

Analyst Recommendations

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

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

ANSYS currently has a consensus price target of $124.90, indicating a potential downside of 13.57%. Given ANSYS’s higher possible upside, analysts plainly believe ANSYS is more favorable than YuMe.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ANSYS $988.47 million 12.41 $265.63 million $3.18 45.44
YuMe $160.41 million 0.76 -$7.72 million $0.10 34.80

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.

Volatility & Risk

ANSYS has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, YuMe has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Profitability

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

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

Dividends

YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 3.4%. 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.

Summary

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

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.

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.

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