Critical Contrast: Digital Turbine (APPS) and Solera Holdings (SLH)

Digital Turbine (NASDAQ: APPS) and Solera Holdings (NYSE:SLH) 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, profitability, dividends and risk.

Institutional and Insider Ownership

17.8% of Digital Turbine shares are held by institutional investors. 4.8% of Digital Turbine 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.

Analyst Ratings

This is a breakdown of recent recommendations for Digital Turbine and Solera Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Turbine 0 0 4 0 3.00
Solera Holdings 0 0 0 0 N/A

Digital Turbine currently has a consensus price target of $1.48, suggesting a potential upside of 22.92%. Given Digital Turbine’s higher probable upside, equities research analysts clearly believe Digital Turbine is more favorable than Solera Holdings.

Earnings & Valuation

This table compares Digital Turbine and Solera Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Digital Turbine $93.63 million 0.85 -$9.37 million ($0.31) -3.87
Solera Holdings N/A N/A N/A N/A N/A

Solera Holdings has higher revenue, but lower earnings than Digital Turbine.

Profitability

This table compares Digital Turbine and Solera Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Turbine -22.54% -31.91% -18.45%
Solera Holdings 18.15% N/A 6.01%

Summary

Digital Turbine beats Solera Holdings on 5 of the 8 factors compared between the two stocks.

Digital Turbine Company Profile

Digital Turbine, Inc. is engaged in delivering end-to-end products and solutions for mobile operators, application advertisers, device original equipment manufacturers (OEMs) and other third parties to enable them to monetize mobile content. The Company operates its business in two operating segments: Advertising and Content. The Advertising segment consists of two businesses: Operator and OEM (O&O) and Advertiser and Publisher (A&P). The O&O business is an advertiser solution for carrier and OEM inventory consisting of services, such as Ignite, a mobile device management platform and Discover, an intelligent application discovery platform. Its A&P business is a mobile user acquisition network across the world consisting of services, such as syndicated network and real time bidding (RTB). The Content segment consists of services, including Marketplace, which is an application and content store, and Pay, which is a content management and mobile payment solution.

Solera Holdings Company Profile

Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.

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