Financial Survey: Agora (NASDAQ:API) versus V2X (NYSE:VVX)

Agora (NASDAQ:API) and V2X (NYSE:VVX) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Agora and V2X, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agora	1	0	0	0	1.00
V2X	2	4	3	1	2.30

V2X has a consensus price target of $61.88, suggesting a potential downside of 7.94%. Given V2X’s stronger consensus rating and higher probable upside, analysts plainly believe V2X is more favorable than Agora.

Institutional and Insider Ownership

40.4% of Agora shares are owned by institutional investors. Comparatively, 95.2% of V2X shares are owned by institutional investors. 14.6% of Agora shares are owned by insiders. Comparatively, 1.1% of V2X shares are owned by 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.

Risk & Volatility

Agora has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, V2X has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Profitability

This table compares Agora and V2X’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agora	3.47%	0.84%	0.68%
V2X	1.81%	15.22%	5.06%

Valuation & Earnings

This table compares Agora and V2X”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agora	$137.36 million	2.89	-$42.73 million	$0.04	106.50
V2X	$4.42 billion	0.48	$34.68 million	$2.50	26.88

V2X has higher revenue and earnings than Agora. V2X is trading at a lower price-to-earnings ratio than Agora, indicating that it is currently the more affordable of the two stocks.

Summary

V2X beats Agora on 10 of the 15 factors compared between the two stocks.

About Agora

Agora, Inc. operates in real-time engagement technology business in the People's Republic of China, the United States, and internationally. The company offers real-time engagement platform-as-a-services providing developers with application programming interfaces to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications. It also provides video and voice calling, interactive live and broadcast streaming, chat, signaling, and interactive whiteboard products; and extensions, such as analytics, recording, AI noise suppression, 3D spatial audio, real-time transcription, and extensions marketplace. In addition, the company offers Application Platforms, including Flexible Classroom, a low-code application Platform as a Service, which combines video, voice, chat, signaling, whiteboard and recording functionalities into an integrated cloud-based solution for education providers; and App Builder, a no-code application platform, designed for developers with little or no coding experience to build their own applications with video conference and live streaming functionalities. It operates through Agora and Shengwang brands. Agora, Inc. was incorporated in 2013 and is headquartered in Santa Clara, California.

About V2X

V2X, Inc. provides critical mission solutions and support services to defense clients worldwide. It offers a suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients. The company was incorporated in 2014 and is headquartered in Mclean, Virginia.