China Information Technology (NASDAQ: CNIT) and ANSYS (NASDAQ:ANSS) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares China Information Technology and ANSYS’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Information Technology $10.19 million 6.20 -$18.17 million N/A N/A
ANSYS $988.47 million 12.67 $265.63 million $3.18 46.42

ANSYS has higher revenue and earnings than China Information Technology.

Institutional & Insider Ownership

1.1% of China Information Technology shares are owned by institutional investors. Comparatively, 96.7% of ANSYS shares are owned by institutional investors. 45.4% of China Information Technology shares are owned by insiders. Comparatively, 1.3% of ANSYS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

China Information Technology has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500. Comparatively, ANSYS has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares China Information Technology and ANSYS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Information Technology N/A N/A N/A
ANSYS 26.01% 13.67% 10.86%

Analyst Recommendations

This is a summary of current ratings for China Information Technology and ANSYS, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Information Technology 0 0 0 0 N/A
ANSYS 2 9 1 0 1.92

ANSYS has a consensus target price of $124.90, suggesting a potential downside of 15.40%. Given ANSYS’s higher probable upside, analysts clearly believe ANSYS is more favorable than China Information Technology.

Summary

ANSYS beats China Information Technology on 9 of the 11 factors compared between the two stocks.

About China Information Technology

China Information Technology, Inc (CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, elevator safety management, education, etc. Through continuous innovation, CNIT is aiming to leverage its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community.

About ANSYS

ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.

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