Reviewing China Digital TV (STVVY) and New Relic (NEWR)

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China Digital TV (OTCMKTS:STVVY) and New Relic (NYSE:NEWR) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

This table compares China Digital TV and New Relic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Digital TV N/A N/A N/A
New Relic -8.53% -6.57% -2.15%

Risk and Volatility

China Digital TV has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, New Relic has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Valuation & Earnings

This table compares China Digital TV and New Relic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Digital TV $6.20 million N/A -$3.06 million N/A N/A
New Relic $479.23 million 11.50 -$45.32 million ($0.31) -305.97

China Digital TV has higher earnings, but lower revenue than New Relic.

Analyst Recommendations

This is a summary of recent recommendations for China Digital TV and New Relic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Digital TV 0 0 0 0 N/A
New Relic 0 3 10 1 2.86

New Relic has a consensus target price of $117.27, suggesting a potential upside of 23.55%. Given New Relic’s higher possible upside, analysts plainly believe New Relic is more favorable than China Digital TV.

Institutional and Insider Ownership

82.3% of New Relic shares are owned by institutional investors. 20.4% of New Relic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

New Relic beats China Digital TV on 6 of the 11 factors compared between the two stocks.

China Digital TV Company Profile

China Digital TV Holding Co., Ltd., through its subsidiaries, provides cable television (TV) value added services, which enables cable TV and Internet protocol television network operators to offer various TV content services in the People's Republic of China. The company offers cloud platforms with embedded gaming and other applications that provide cloud computing technology-based digital video delivery solutions to television and telecommunication network operators. Its cloud platforms enable television and telecommunication network operators to use their two-way set-top boxes to run various value-added applications, such as video games, 3D games, educational applications, and business service applications, which are accessible on smart phones, tablet computers, personal computers, Internet TVs, and other devices. The company also provides 1+ Cloud Gaming cloud platform that offers 2D games, 3D games, motion-sensing games, and customized games; and interactive education application on the cloud platform primarily through cloud television programs, including nursery rhymes, early education, English language education, and online drawing for children of age 2 to 10. In addition, it offers cloud virtual reality (VR) services that enables users to access cloud server and use various VR applications, such as games, education, and media players; and technical support and services. Further, the company provides cloud platform system integration services, such as cloud computing software, hardware, and post-contract customer support services; and system development services comprising the development of customized cloud-based software applications. China Digital TV Holding Co., Ltd. was founded in 2004 and is headquartered in Beijing, the People's Republic of China.

New Relic Company Profile

New Relic, Inc., a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications. It also provides New Relic Synthetics, which simulates usage and reproduces business-critical functionality that enables its users to test their software throughout the entire development life cycle; New Relic Infrastructure that provides a view of the health and configuration changes for an enterprise's entire host ecosystem across various environments; and New Relic Insights that enables technology and business users to perform real-time analysis. In addition, the company offers New Relic Applied Intelligence platform; New Relic's alerting platform, a centralized notification system that delivers alerts from across the products that make up the New Relic Platform; and New Relic's plugins architecture, which offers a plugin architecture, including application programming interfaces and software development kits for customers and partners to embed and extend its solution into their products. The company sells its products through direct sales organizations, online and offline sales, and marketing activities. New Relic, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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