Ability (NASDAQ: ABIL) and Actua Corporation (NASDAQ:ACTA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Ability and Actua Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ability -109.93% -100.03% -27.91%
Actua Corporation 67.78% -5.42% -4.26%

Earnings & Valuation

This table compares Ability and Actua Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ability $16.51 0.98 -$8.05 N/A N/A
Actua Corporation $109.30 4.55 $70.08 $2.15 7.20

Actua Corporation has higher revenue and earnings than Ability.

Insider & Institutional Ownership

4.7% of Ability shares are owned by institutional investors. Comparatively, 74.7% of Actua Corporation shares are owned by institutional investors. 10.2% of Actua Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Ability and Actua Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ability 0 1 0 0 2.00
Actua Corporation 0 1 0 0 2.00

Ability currently has a consensus target price of $1.30, suggesting a potential upside of 108.00%. Actua Corporation has a consensus target price of $17.00, suggesting a potential upside of 9.82%. Given Ability’s higher probable upside, equities analysts plainly believe Ability is more favorable than Actua Corporation.

Volatility & Risk

Ability has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, Actua Corporation has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Summary

Actua Corporation beats Ability on 9 of the 10 factors compared between the two stocks.

About Ability

Ability Inc. is a holding company. The Company operates through its subsidiaries, Ability Computer & Software Industries Ltd. and Ability Security Systems Ltd., which provide interception, geolocation and cyber intelligence tools for security and intelligence agencies, military forces, law enforcement agencies and homeland security agencies around the world. The Company is engaged in off-air interception of voice, short message service (SMS), and data communication from both cellular and satellite communication networks, and deciphering solutions for both cellular and satellite communications. The Company’s product categories include Cellular Interception, Cellular Counter Interception, Satellite Interception, Geolocation, Cyber and Crime Prevention. Its Cellular Interception systems include Ultimate Interceptor (ULIN), IBIS, TouchDown, ACIS, AGIS-51 and 3G-Cat. Its Satellite Interception systems include IRIS, ATIS and SLIS.

About Actua Corporation

Actua Corporation, formerly ICG Group, Inc., is a multi-vertical cloud technology company. The Company operates through two segments, which include the vertical cloud segment and the vertical cloud (venture) segment. The Company’s vertical cloud-based businesses include Bolt Solutions Inc. (Bolt), Folio Dynamics Holdings Inc. (FolioDynamix), GovDelivery Holdings, Inc. (GovDelivery) and VelocityEHS Holdings, Inc. (VelocityEHS), which operate in the commercial and personal property and casualty insurance, wealth management, government communications and environmental, health and safety (EH&S) markets, respectively. The vertical cloud (venture) businesses include InstaMed Holdings, Inc. (InstaMed) and Parchment Inc. (Parchment), which operate a cloud-based healthcare payments network and an education credentials technology, respectively.

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