Analyzing ANSYS (ANSS) & Activision Blizzard (ATVI)
ANSYS (NASDAQ: ATVI) and Activision Blizzard (NASDAQ:ATVI) are both large-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Institutional and Insider Ownership
95.3% of ANSYS shares are owned by institutional investors. Comparatively, 87.0% of Activision Blizzard shares are owned by institutional investors. 1.1% of ANSYS shares are owned by company insiders. Comparatively, 1.3% of Activision Blizzard shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Activision Blizzard pays an annual dividend of $0.34 per share and has a dividend yield of 0.4%. ANSYS does not pay a dividend. Activision Blizzard pays out 16.6% of its earnings in the form of a dividend. Activision Blizzard has increased its dividend for 7 consecutive years.
Earnings and Valuation
This table compares ANSYS and Activision Blizzard’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ANSYS||$1.10 billion||14.51||$259.25 million||$3.61||52.22|
|Activision Blizzard||$7.02 billion||8.74||$273.00 million||$2.05||39.23|
Activision Blizzard has higher revenue and earnings than ANSYS. Activision Blizzard is trading at a lower price-to-earnings ratio than ANSYS, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for ANSYS and Activision Blizzard, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ANSYS currently has a consensus price target of $163.70, suggesting a potential downside of 13.16%. Activision Blizzard has a consensus price target of $78.77, suggesting a potential downside of 2.06%. Given Activision Blizzard’s stronger consensus rating and higher possible upside, analysts clearly believe Activision Blizzard is more favorable than ANSYS.
This table compares ANSYS and Activision Blizzard’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
ANSYS has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Activision Blizzard has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Activision Blizzard beats ANSYS on 9 of the 17 factors compared between the two stocks.
ANSYS, Inc. develops and markets engineering simulation software and services worldwide. The company offers ANSYS Workbench, a framework upon which the company's engineering simulation technologies are built; ANSYS multiphysics software to simulate the interactions between structures, heat transfer, fluids, and electronics in a unified engineering simulation environment; and structural analysis product suite that provides simulation tools for product design and optimization. It also provides fluids product suite that enables modeling of fluid flow and other related physical phenomena; electronics product suite, which provides field simulation software for designing electronic and electromechanical products; and power analysis and optimization software suite. In addition, the company offers power analysis and optimization software suite that manages the power budget, power delivery integrity, and power-induced noise in an electronic design; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; system simulation capability for the design of automated products; and high-performance computing product suite, which delivers cross-physics parallel processing capabilities for simulation software. Further, it provides Discovery product family for use in the simulation of product design; academic product suite with a portfolio of academic products based on associate, research, and teaching; ANSYS medini analyze, a suite for functional safety analysis; and ANSYS Fluent that automatically refines the mesh. The company serves engineers, designers, researchers, and students in the aerospace and defense, automotive, electronics, semiconductors, energy, materials and chemical processing, turbomachinery, consumer products, healthcare, and sports industries and academia. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.
About Activision Blizzard
Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. The company develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content. It also maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games; and develops and publishes interactive entertainment content and services primarily on mobile platforms, such as Android and iOS, as well as distributes its content and services on the PC platform primarily through Facebook. In addition, the company engages in creating original film and television content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. Its products include various genres, including first-person shooter, action/adventure, role-playing, strategy, and others. The company serves retailers and distributors, including mass-market retailers, first party digital storefronts, consumer electronics stores, discount warehouses, and game specialty stores through third-party distribution and licensing arrangements in the United States, Australia, Brazil, Canada, China, France, Germany, Ireland, Italy, Japan, Malta, Mexico, the Netherlands, Romania, Singapore, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. Activision Blizzard, Inc. was incorporated in 1979 and is headquartered in Santa Monica, California.
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