SeaChange International (NASDAQ:SEAC) and Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Institutional and Insider Ownership
73.6% of SeaChange International shares are owned by institutional investors. Comparatively, 8.2% of Telefonaktiebolaget LM Ericsson shares are owned by institutional investors. 2.9% of SeaChange International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
SeaChange International has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Telefonaktiebolaget LM Ericsson has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Telefonaktiebolaget LM Ericsson pays an annual dividend of $0.07 per share and has a dividend yield of 0.9%. SeaChange International does not pay a dividend. Telefonaktiebolaget LM Ericsson pays out -14.9% of its earnings in the form of a dividend.
This table compares SeaChange International and Telefonaktiebolaget LM Ericsson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telefonaktiebolaget LM Ericsson||-13.14%||-5.62%||-2.15%|
This is a breakdown of current recommendations for SeaChange International and Telefonaktiebolaget LM Ericsson, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telefonaktiebolaget LM Ericsson||1||7||2||0||2.10|
SeaChange International presently has a consensus price target of $3.50, suggesting a potential upside of 104.68%. Telefonaktiebolaget LM Ericsson has a consensus price target of $7.74, suggesting a potential downside of 5.95%. Given SeaChange International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SeaChange International is more favorable than Telefonaktiebolaget LM Ericsson.
Earnings and Valuation
This table compares SeaChange International and Telefonaktiebolaget LM Ericsson’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SeaChange International||$80.27 million||0.76||$13.49 million||$0.11||15.55|
|Telefonaktiebolaget LM Ericsson||$23.60 billion||1.16||-$4.13 billion||($0.47)||-17.51|
SeaChange International has higher earnings, but lower revenue than Telefonaktiebolaget LM Ericsson. Telefonaktiebolaget LM Ericsson is trading at a lower price-to-earnings ratio than SeaChange International, indicating that it is currently the more affordable of the two stocks.
SeaChange International beats Telefonaktiebolaget LM Ericsson on 8 of the 15 factors compared between the two stocks.
About SeaChange International
SeaChange International, Inc. provides multiscreen, advertising, and premium over the top (OTT) video products and services that facilitate the aggregation, licensing, management, and distribution of video and television advertising content worldwide. It offers video products, including SeaChange Adrenalin, a multiscreen video back office platform that enables service providers to manage, monetize, and deliver a seamless viewing experience across televisions, personal computers (PCs), tablets, smartphones, and other IP-enabled devices; and SeaChange AssetFlow, a content management solution, which is used to receive, manage, and publish content for viewing on televisions, tablets, PCs, and other consumer devices, as well as SeaChange Rave, an integrated platform. The company also provides advertising products, such as SeaChange Infusion, an advertising platform to maximize advertising revenue across multiscreen, broadcast, on-demand, and OTT viewing. In addition, it offers Nucleus, a video gateway software that ports to third-party set-top boxes, or other customer on-premises equipment hardware and system on a chip, as well as acts as a hub for various video distribution to any IP-connected device throughout the home, such as tablets, smart phones, and game consoles; and SeaChange NitroX, an user experience product that empower service providers and content owners to optimize live and on-demand video consumption on multiscreen and OTT services. Further, the company provides professional, and maintenance and support services, as well as managed services. It sells and markets its products and services through a direct sales organization, and sales representatives and partners, as well as to systems integrators and value-added resellers. The company serves cable system and satellite operators, as well as telecommunications and media companies. SeaChange International, Inc. was founded in 1993 and is headquartered in Acton, Massachusetts.
About Telefonaktiebolaget LM Ericsson
Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for networks, IT and cloud, and media markets worldwide. It operates through four segments: Networks, Digital Services, Managed Services, and Other. The Networks segment provides mobile radio access networks, transport solutions, and site solutions, as well as related services, such as network rollout, network tuning, and customer support. The Digital Services segment offers products and services for service providers in the areas of operations support systems and business support systems; packet core and communication; network functions virtualization and cloud infrastructure; application development and modernization; and consulting services. The Managed Services segment provides vendor agnostic services, including networks and IT managed, and network design and optimization services to manage service provider's networks. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
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