Financial Survey: CA (CA) & Datawatch (DWCH)

CA (NASDAQ:CA) and Datawatch (NASDAQ:DWCH) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Volatility & Risk

CA has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Datawatch has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for CA and Datawatch, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CA 0 7 0 0 2.00
Datawatch 0 1 1 0 2.50

CA presently has a consensus price target of $37.83, indicating a potential downside of 14.87%. Datawatch has a consensus price target of $19.50, indicating a potential upside of ∞. Given Datawatch’s stronger consensus rating and higher probable upside, analysts plainly believe Datawatch is more favorable than CA.

Profitability

This table compares CA and Datawatch’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CA 11.19% 15.11% 7.46%
Datawatch -24.71% 2.35% 1.22%

Dividends

CA pays an annual dividend of $1.02 per share and has a dividend yield of 2.3%. Datawatch does not pay a dividend. CA pays out 44.0% of its earnings in the form of a dividend. CA has increased its dividend for 3 consecutive years.

Insider & Institutional Ownership

69.7% of CA shares are owned by institutional investors. Comparatively, 43.3% of Datawatch shares are owned by institutional investors. 0.9% of CA shares are owned by insiders. Comparatively, 9.4% of Datawatch 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.

Valuation and Earnings

This table compares CA and Datawatch’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CA $4.24 billion 4.39 $476.00 million $2.32 19.16
Datawatch $41.68 million 0.00 -$9.25 million N/A N/A

CA has higher revenue and earnings than Datawatch.

Summary

CA beats Datawatch on 8 of the 15 factors compared between the two stocks.

CA Company Profile

CA, Inc., doing business as CA technologies, develops, markets, delivers, and licenses software products and services in the United States and internationally. It operates through three segments: Mainframe Solutions, Enterprise Solutions, and Services. The Mainframe Solutions segment offers solutions for the IBM z Systems platform, which runs various mission critical business applications. Its mainframe solutions enable customers enhance economics by increasing throughput and lowering cost per transaction; increasing business agility through DevOps tooling and processes; increasing reliability and availability of operations through machine intelligence and automation solutions; and protecting enterprise data with security and compliance. The Enterprise Solutions segment provides a range of software planning, development, and management tools for mobile, cloud, and distributed computing environments. It primarily provides customers secure application development, infrastructure management, automation, and identity-centric security solutions. The Services segment offers various services, such as consulting, implementation, application management, education, and support services to commercial and government customers for implementation and adoption of its software solutions. The company serves banks, insurance companies, other financial services providers, government agencies, information technology service providers, telecommunication providers, transportation companies, manufacturers, technology companies, retailers, educational organizations, and health care institutions. It sells its products through direct sales force, as well as through various partner channels comprising resellers, service providers, system integrators, managed service providers, and technology partners. The company was formerly known as Computer Associates International, Inc. and changed its name to CA, Inc. in 2006. CA, Inc. was founded in 1974 and is headquartered in New York, New York.

Datawatch Company Profile

Datawatch Corporation designs, develops, markets, and distributes business computer software products to self-service data preparation and visual data discovery markets in the United States and internationally. Its software solutions allow organizations to access, analyze, and visualize their information. The company's products include Datawatch Monarch, a self-service data preparation tool to explore, manipulate, and merge new data sources; Datawatch Monarch Swarm, a browser-based platform offers team-driven data preparation and centralized data marketplace for speed collaboration; Datawatch Panopticon designed for situations for data analysis; and Datawatch Report Mining Server, a solution for data preparation capabilities. It also provides implementation and support of its software products, as well as training on their use and administration. The company sells its products to end-users through distributors, value-added resellers, original equipment manufacturers, and strategic partners. Datawatch Corporation was founded in 1985 and is headquartered in Bedford, Massachusetts.

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