NetScout Systems (NASDAQ: NTCT) and Virtusa (NASDAQ:VRTU) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Insider and Institutional Ownership
86.8% of Virtusa shares are owned by institutional investors. 3.5% of NetScout Systems shares are owned by insiders. Comparatively, 6.0% of Virtusa shares are owned 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.
NetScout Systems has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Virtusa has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Earnings & Valuation
This table compares NetScout Systems and Virtusa’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NetScout Systems||$1.16 billion||1.98||$33.29 million||$1.66||15.84|
|Virtusa||$858.73 million||1.50||$11.85 million||$0.67||65.42|
NetScout Systems has higher revenue and earnings than Virtusa. NetScout Systems is trading at a lower price-to-earnings ratio than Virtusa, indicating that it is currently the more affordable of the two stocks.
This table compares NetScout Systems and Virtusa’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for NetScout Systems and Virtusa, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NetScout Systems currently has a consensus target price of $27.80, suggesting a potential upside of 5.70%. Virtusa has a consensus target price of $58.71, suggesting a potential upside of 33.96%. Given Virtusa’s stronger consensus rating and higher possible upside, analysts plainly believe Virtusa is more favorable than NetScout Systems.
NetScout Systems beats Virtusa on 8 of the 14 factors compared between the two stocks.
About NetScout Systems
NetScout Systems, Inc. (NetScout) provides operational intelligence and performance analytics for service assurance and cyber security solutions. The Company’s solutions are used in various service provider, enterprise and government networks. Its nGenius and Infinistream technologies, along with certain product lines from the acquired businesses, enable information technology (IT) organizations to manage service delivery quality, and identify and address business service performance issues and security threats. The Company’s manufacturing operations consist of final product assembly, configuration and testing. The Company’s nGeniusONE Service Assurance Solution is used to support NetScout’s enterprise, service provider and government customers. The Company’s Intelligent Data Sources, marketed under the Infinistream brand, provide collection and analysis of high-volume packet-flow data from across the network that is displayed through the nGeniusONE Service Assurance Solution.
Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients’ core customer-facing processes into one or more core systems. It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development. The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.
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