RadiSys Corporation (NASDAQ: RSYS) and Digital River (NASDAQ:DRIV) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitabiliy, dividends and risk.
Profitability
This table compares RadiSys Corporation and Digital River’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RadiSys Corporation | -14.38% | -14.12% | -5.46% |
| Digital River | 4.52% | 4.51% | 2.18% |
Analyst Ratings
This is a breakdown of recent recommendations for RadiSys Corporation and Digital River, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RadiSys Corporation | 0 | 0 | 4 | 0 | 3.00 |
| Digital River | 0 | 0 | 0 | 0 | N/A |
RadiSys Corporation currently has a consensus price target of $3.63, suggesting a potential upside of 119.70%. Given RadiSys Corporation’s higher probable upside, equities research analysts clearly believe RadiSys Corporation is more favorable than Digital River.
Institutional and Insider Ownership
57.4% of RadiSys Corporation shares are held by institutional investors. 4.9% of RadiSys Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares RadiSys Corporation and Digital River’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| RadiSys Corporation | $168.66 million | 0.38 | -$8.87 million | ($0.63) | -2.62 |
| Digital River | N/A | N/A | N/A | N/A | N/A |
Digital River has higher revenue, but lower earnings than RadiSys Corporation.
Summary
RadiSys Corporation beats Digital River on 5 of the 8 factors compared between the two stocks.
About RadiSys Corporation
Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.
About Digital River
Digital River, Inc. (Digital River) is engaged in providing Commerce-as-a-Service solutions. The Company operates through a single segment, being providing solutions to companies that want to sell their products and services online. It provides commerce, payments and marketing solutions to business-to-business (B2B) and business-to-consumer (B2C) digital product and cloud service companies and manufacturers. The Company’s Commerce-as-a-Service suite includes commerce experience, tools and capabilities; Commerce Business Infrastructure (CBI); and marketing services. Its payments solutions offer customers a global payments footprint, including a range of domestic and international payment solutions, 180 global payment methods, 170 international currencies and 50 connections to local banks from across the globe. It provides a range of marketing services including paid search advertising, search engine optimization, affiliate marketing, store optimization and others.
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