HeadHead Comparison: NetScout Systems (NTCT) vs. Altaba (AABA)

NetScout Systems (NASDAQ: NTCT) and Altaba (NASDAQ:AABA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

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This is a summary of current recommendations and price targets for NetScout Systems and Altaba, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetScout Systems 0 4 2 0 2.33
Altaba 0 2 5 0 2.71

NetScout Systems presently has a consensus target price of $27.80, suggesting a potential upside of 1.09%. Altaba has a consensus target price of $89.29, suggesting a potential upside of 10.85%. Given Altaba’s stronger consensus rating and higher probable upside, analysts clearly believe Altaba is more favorable than NetScout Systems.

Valuation & Earnings

This table compares NetScout Systems and Altaba’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NetScout Systems $986.79 million 2.24 $79.81 million $0.99 27.78
Altaba $5.17 billion 13.61 -$214.32 million N/A N/A

NetScout Systems has higher earnings, but lower revenue than Altaba.

Insider and Institutional Ownership

72.8% of Altaba shares are owned by institutional investors. 3.5% of NetScout Systems shares are owned by insiders. Comparatively, 24.0% of Altaba shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

NetScout Systems has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Altaba has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

Profitability

This table compares NetScout Systems and Altaba’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NetScout Systems 8.06% 4.07% 2.71%
Altaba N/A N/A N/A

Summary

Altaba beats NetScout Systems on 9 of the 13 factors compared between the two stocks.

NetScout Systems Company Profile

NetScout Systems, Inc. provides real-time operational intelligence and performance analytics for service assurance, and cybersecurity solutions in the United States, Europe, Asia, and internationally. The company offers nGeniusONE management software that enables customers to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules that enable its customers to analyze and troubleshoot traffic in radio access and WiFi networks, as well as gain timely insight into services, applications, and systems. It also provides Intelligent Data Sources under the Infinistream brand name that provide real-time collection and analysis of data from the network; packet flow switching solutions that delivers targeted network traffic access to an increasing number of monitoring and security systems; and a suite of test access points that enable non-disruptive access to network traffic with multiple link type and speed options. In addition, the company offers portable network analysis and troubleshooting tools, which help customers identify key issues that impact network and application performance. Further, it provides security solutions that enable service providers and enterprises to protect their networks against DDoS attacks; and threat detection solutions that enable enterprises to identify and investigate advanced threat campaigns that present tangible risks to the integrity of their networks. The company serves enterprise customers in industries, such as financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail; mobile operators, wireline operators, and cable operators; and governmental agencies through a direct sales force, and indirect reseller and distribution channels. NetScout Systems, Inc. was founded in 1984 and is headquartered in Westford, Massachusetts.

Altaba Company Profile

Altaba Inc. operates as a non-diversified, closed-end management investment company in the United States. Its assets consist primarily of equity investments, short-term debt investments, and cash. The company was formerly known as Yahoo! Inc. and changed its name to Altaba Inc. in June 2017. Altaba Inc. was founded in 1994 and is based in New York, New York.

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