Comparing Avid Technology (NASDAQ:AVID) & Opera (NASDAQ:OPRA)

Avid Technology (NASDAQ:AVID) and Opera (NASDAQ:OPRA) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Insider and Institutional Ownership

58.5% of Avid Technology shares are owned by institutional investors. Comparatively, 8.9% of Opera shares are owned by institutional investors. 6.7% of Avid Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Avid Technology and Opera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avid Technology 0.50% -6.30% 3.61%
Opera 7.72% 4.51% 3.94%

Volatility and Risk

Avid Technology has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Opera has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Avid Technology and Opera, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Technology 0 0 3 0 3.00
Opera 0 0 4 0 3.00

Avid Technology currently has a consensus target price of $10.88, suggesting a potential upside of 53.28%. Opera has a consensus target price of $12.75, suggesting a potential upside of 18.38%. Given Avid Technology’s higher possible upside, research analysts clearly believe Avid Technology is more favorable than Opera.

Earnings and Valuation

This table compares Avid Technology and Opera’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avid Technology $411.79 million 0.75 $7.60 million $0.36 19.71
Opera $334.86 million 3.53 $57.90 million $0.55 19.58

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

Summary

Opera beats Avid Technology on 8 of the 13 factors compared between the two stocks.

About Avid Technology

Avid Technology, Inc. develops, markets, sells, and supports software, hardware, and integrated solutions for video and audio content creation, management, and distribution worldwide. The company's video products and solutions include the Media Composer, which is used to edit video content, such as television programming, commercials, and films; Avid NEXIS shared storage systems; and Maestro product line solutions for the integration of virtual sets, augmented reality, and video wall control into existing workflows. Its audio products and solutions include Pro Tools digital audio software solutions to facilitate the audio production process, including music and sound creation, recording, editing, signal processing, integrated surround mixing and mastering, and reference video playback; Sibelius, which allows users to create, edit, and publish musical scores; S6 that offers complementary control surfaces and consoles; and VENUE | S6L live-sound systems. The company also provides Avid Link, a mobile application to connect with other artists, producers, mixers, composers, editors, videographers, movie makers, and graphic designers; FastServe video server that assists broadcasters in making the move to UHD and IP based workflows with a new and modular architecture; and hardware products, such as I/O devices, interfaces, and audio and video processing equipment. In addition, it offers various service contracts and support plans; professional services, such as workflow design and consulting, program and project management, system installation and commissioning, and custom development and role-based product level training; and public and private training to customers and alliance partners, as well as develops and licenses curriculum content for use by third party Avid Learning partners to deliver training to customers, users, and alliance partners. Avid Technology, Inc. was incorporated in 1987 and is headquartered in Burlington, Massachusetts.

About Opera

Opera Limited, through its subsidiaries, provides mobile and PC web browsers in Ireland, Russia, and internationally. It offers mobile browser products under the Opera Mini, Opera for Android, and Opera Touch names; PC browser under the Opera for Computers name; Opera News, a personalized news aggregation app; and Okash, a microfinance app. The company was founded in 1996 and is headquartered in Oslo, Norway.

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