Snap (NYSE:SNAP) and KLDiscovery (OTCMKTS:KLDI) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Institutional & Insider Ownership
47.5% of Snap shares are owned by institutional investors. 42.6% of KLDiscovery shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of recent recommendations and price targets for Snap and KLDiscovery, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Snap currently has a consensus target price of $66.29, suggesting a potential upside of 10.05%. KLDiscovery has a consensus target price of $14.00, suggesting a potential upside of 64.71%. Given KLDiscovery’s stronger consensus rating and higher possible upside, analysts clearly believe KLDiscovery is more favorable than Snap.
This table compares Snap and KLDiscovery’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Snap and KLDiscovery’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Snap||$1.72 billion||52.95||-$1.03 billion||($0.75)||-80.31|
|KLDiscovery||$312.05 million||1.16||-$54.01 million||($1.27)||-6.69|
KLDiscovery has lower revenue, but higher earnings than Snap. Snap is trading at a lower price-to-earnings ratio than KLDiscovery, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Snap has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, KLDiscovery has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500.
KLDiscovery beats Snap on 8 of the 14 factors compared between the two stocks.
Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application with functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures video from a human perspective; and advertising products, including AR and Snap ads. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
KLDiscovery Inc. provides eDiscovery and data recovery services to corporations, law firms, government agencies, and individual consumers worldwide. The company offers eDiscovery solutions, including Nebula, a proprietary end-to-end information governance and eDiscovery platform, which helps to facilitate the identification, preservation, collection, processing, review, and exchange of electronically stored information (ESI); eDiscovery.com Review (EDR), a platform used to search, review and exchange ESI; Relativity, a document review tool; KLD Analytics, which offers technology-assisted review tools; KLD Processing, a processing platform; managed review services, such as providing facilities, staffing, and expertise necessary to review large and complex data sets in various types of matters comprising litigation, investigations, and regulatory reviews; and digital forensics services. It also provides information archiving services, such as legal hold management; Office 365 migration and management; and Nebula Big Data Store, an enterprise-grade storage solution. In addition, the company offers data recovery services, including email recovery services; tape services comprising backup infrastructure migration and consolidation, legacy tape and data remediation, and recovery from physically-damaged and quickly-erased or partially-overwritten tapes; and data destruction services, as well as mobile phone repair services. Further, it provides data recovery software, such as Ontrack EasyRecovery and Ontrack PowerControls. KLDiscovery Inc. was founded in 2005 and is headquartered in McLean, Virginia.
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