Analyzing New Relic (NEWR) and Autodesk (ADSK)

New Relic (NYSE: NEWR) and Autodesk (NASDAQ:ADSK) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Risk and Volatility

New Relic has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Autodesk has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Earnings & Valuation

This table compares New Relic and Autodesk’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Relic $263.48 million 14.38 -$61.07 million ($0.99) -69.03
Autodesk $2.03 billion 12.25 -$582.10 million ($2.57) -43.95

New Relic has higher earnings, but lower revenue than Autodesk. New Relic is trading at a lower price-to-earnings ratio than Autodesk, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

75.5% of New Relic shares are owned by institutional investors. Comparatively, 95.1% of Autodesk shares are owned by institutional investors. 23.1% of New Relic shares are owned by company insiders. Comparatively, 6.1% of Autodesk shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares New Relic and Autodesk’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Relic -16.17% -25.22% -13.61%
Autodesk -28.46% -93.60% -8.78%

Analyst Ratings

This is a summary of recent ratings and recommmendations for New Relic and Autodesk, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 0 4 7 0 2.64
Autodesk 0 2 21 0 2.91

New Relic currently has a consensus price target of $61.00, indicating a potential downside of 10.74%. Autodesk has a consensus price target of $132.33, indicating a potential upside of 17.16%. Given Autodesk’s stronger consensus rating and higher possible upside, analysts clearly believe Autodesk is more favorable than New Relic.

Summary

Autodesk beats New Relic on 8 of the 14 factors compared between the two stocks.

About New Relic

New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.

About Autodesk

Autodesk, Inc. is a design software and services company, offering customers productive business solutions through technology products and services. The Company’s segments include Architecture, Engineering and Construction (AEC), Platform Solutions and Emerging Business (PSEB), Manufacturing (MFG), and Media and Entertainment (M&E). The Company serves customers in the architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries. The Company’s product development and manufacturing software provides manufacturers in automotive, transportation, industrial machinery, consumer products and building products with digital engineering solutions. The Company’s product offerings include, AutoCAD, AutoCAD LT, Industry Collections, 3ds Max, Maya, Revit, Inventor, AutoCAD Civil three dimensional (3D), CAM Solutions, Fusion 360, BIM 360 and Shotgun.

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