Crossroads Systems (CRDS) & NetApp (NTAP) Critical Comparison
NetApp (NASDAQ: NTAP) and Crossroads Systems (NASDAQ:CRDS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitabiliy, institutional ownership, dividends and valuation.
Risk and Volatility
NetApp has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Crossroads Systems has a beta of 2.67, meaning that its stock price is 167% more volatile than the S&P 500.
Insider & Institutional Ownership
92.4% of NetApp shares are held by institutional investors. Comparatively, 7.5% of Crossroads Systems shares are held by institutional investors. 0.5% of NetApp shares are held by company insiders. Comparatively, 27.4% of Crossroads Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares NetApp and Crossroads Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NetApp pays an annual dividend of $0.76 per share and has a dividend yield of 2.0%. Crossroads Systems does not pay a dividend. NetApp pays out 42.0% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for NetApp and Crossroads Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NetApp presently has a consensus price target of $41.71, indicating a potential upside of 8.56%. Given NetApp’s higher possible upside, equities analysts plainly believe NetApp is more favorable than Crossroads Systems.
Earnings and Valuation
This table compares NetApp and Crossroads Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NetApp||$5.52 billion||1.88||$933.00 million||$1.81||21.23|
|Crossroads Systems||$289,000.00||8.05||-$1.31 million||($1.07)||-1.78|
NetApp has higher revenue and earnings than Crossroads Systems. Crossroads Systems is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks.
NetApp beats Crossroads Systems on 10 of the 14 factors compared between the two stocks.
NetApp, Inc. (NetApp) provides software, systems and services to manage and store customer data. The Company enables enterprises, service providers, governmental organizations, and partners to envision, deploy and evolve their information technology (IT) environments. The Company offers a portfolio of products and services that satisfy a range of customer workloads across different data types and deployment models. Its data management and storage offerings help manage business productivity, performance and profitability, while providing investment protection and asset utilization. The Company’s FlexPod portfolio includes FlexPod Datacenter for core enterprise data centers and service providers, FlexPod Express for medium-sized businesses and branch offices, and FlexPod Select for data-intensive workloads. The portfolio is validated with hypervisors, operating systems, systems management tools and cloud management platforms.
About Crossroads Systems
Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.
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