Analyzing RadiSys Corporation (NASDAQ:RSYS) and SMART Technologies (SMT)

SMART Technologies (NASDAQ: SMT) and RadiSys Corporation (NASDAQ:RSYS) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

11.7% of SMART Technologies shares are held by institutional investors. Comparatively, 57.3% of RadiSys Corporation shares are held by institutional investors. 4.9% of RadiSys Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for SMART Technologies and RadiSys Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SMART Technologies 0 0 0 0 N/A
RadiSys Corporation 0 0 4 0 3.00

RadiSys Corporation has a consensus target price of $3.63, suggesting a potential upside of 157.09%. Given RadiSys Corporation’s higher possible upside, analysts clearly believe RadiSys Corporation is more favorable than SMART Technologies.

Earnings & Valuation

This table compares SMART Technologies and RadiSys Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SMART Technologies N/A N/A N/A ($5.46) -0.82
RadiSys Corporation $168.66 million 0.33 -$8.87 million ($0.63) -2.24

SMART Technologies has higher revenue, but lower earnings than RadiSys Corporation. RadiSys Corporation is trading at a lower price-to-earnings ratio than SMART Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

SMART Technologies has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, RadiSys Corporation has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Profitability

This table compares SMART Technologies and RadiSys Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SMART Technologies -9.52% N/A -17.44%
RadiSys Corporation -14.38% -14.12% -5.46%

Summary

RadiSys Corporation beats SMART Technologies on 8 of the 10 factors compared between the two stocks.

About SMART Technologies

SMART Technologies Inc. (SMART) is a provider of technology solutions. SMART solutions include large-format displays, collaboration software and services that enable teaching, learning and work experiences in schools and workplaces. Its hardware and software products for the education market include SMART Board interactive flat panels, SMART kapp digital capture board, SMART Board interactive whiteboards, SMART Learning Suite Software, SMART Notebook collaborative learning software, SMART lab, SMART response 2, SMART amp collaborative learning software and SMART Exchange. It offers a range of visual collaboration solutions, consisting of software combined with touch-sensitive interactive displays and remote conferencing capabilities. Its hardware and software products for the enterprise market include SMART kapp iQ and SMART kapp iQ Pro, kapp digital capture board, SMART Room System for Microsoft Skype for Business, SMART Meeting Pro software and Bridgit conferencing software.

About RadiSys Corporation

Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.

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