Datawatch (NASDAQ:DWCH) and Adobe Systems (NASDAQ:ADBE) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
37.8% of Datawatch shares are owned by institutional investors. Comparatively, 84.8% of Adobe Systems shares are owned by institutional investors. 9.4% of Datawatch shares are owned by insiders. Comparatively, 0.3% of Adobe Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Datawatch and Adobe Systems’ gross revenue, earnings per share and valuation.
Adobe Systems has higher revenue and earnings than Datawatch. Datawatch is trading at a lower price-to-earnings ratio than Adobe Systems, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Datawatch and Adobe Systems, as provided by MarketBeat.
Datawatch currently has a consensus target price of $16.75, indicating a potential upside of 65.02%. Adobe Systems has a consensus target price of $262.78, indicating a potential upside of 3.39%. Given Datawatch’s stronger consensus rating and higher probable upside, analysts plainly believe Datawatch is more favorable than Adobe Systems.
Volatility & Risk
Datawatch has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Adobe Systems has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
This table compares Datawatch and Adobe Systems’ net margins, return on equity and return on assets.
Adobe Systems beats Datawatch on 10 of the 14 factors compared between the two stocks.
Datawatch Corporation designs, develops, markets, and distributes business computer software products to self-service data preparation and visual data discovery markets in the United States and internationally. Its software solutions allow organizations to access, analyze, and visualize their information. The company's products include Datawatch Monarch, a self-service data preparation tool to explore, manipulate, and merge new data sources; Datawatch Monarch Swarm, a browser-based platform offers team-driven data preparation and centralized data marketplace for speed collaboration; Datawatch Panopticon designed for situations for data analysis; and Datawatch Report Mining Server, a solution for data preparation capabilities. It also provides implementation and support of its software products, as well as training on their use and administration. The company sells its products to end-users through distributors, value-added resellers, original equipment manufacturers, and strategic partners. Datawatch Corporation was founded in 1985 and is headquartered in Bedford, Massachusetts.
About Adobe Systems
Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company's Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, audience management, and video delivery and monetization solutions to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Print and Publishing segment offers products and services, such as e-learning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. The company was founded in 1982 and is headquartered in San Jose, California.