Global Research Syndicate
No Result
View All Result
  • Latest News
  • Consumer Research
  • Survey Research
  • Marketing Research
  • Industry Research
  • Data Collection
  • More
    • Data Analysis
    • Market Insights
  • Latest News
  • Consumer Research
  • Survey Research
  • Marketing Research
  • Industry Research
  • Data Collection
  • More
    • Data Analysis
    • Market Insights
No Result
View All Result
globalresearchsyndicate
No Result
View All Result
Home Latest News

Commvault Systems, Inc. (CVLT) vs. Gartner, Inc. (IT): Which is the Better Investment?

globalresearchsyndicate by globalresearchsyndicate
November 13, 2019
in Latest News
0
Commvault Systems, Inc. (CVLT) vs. Gartner, Inc. (IT): Which is the Better Investment?
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Commvault Systems, Inc. (NASDAQ:CVLT) shares are down more than -15.62% this year and recently increased 0.61% or $0.3 to settle at $49.86. Gartner, Inc. (NYSE:IT), on the other hand, is up 25.57% year to date as of 11/11/2019. It currently trades at $160.53 and has returned 1.65% during the past week.

Commvault Systems, Inc. (NASDAQ:CVLT) and Gartner, Inc. (NYSE:IT) are the two most active stocks in the Application Software industry based on today’s trading volumes. We will compare the two companies based on the strength of various metrics, including growth, profitability, risk, return, and valuation to determine if one is a better investment than the other.

Growth

One of the key things investors look for in a company is the ability to grow earnings at a high compound rate over time. Analysts expect CVLT to grow earnings at a 10.00% annual rate over the next 5 years. Comparatively, IT is expected to grow at a 8.75% annual rate. All else equal, CVLT’s higher growth rate would imply a greater potential for capital appreciation.

Profitability and Returns

Growth isn’t very attractive to investors if companies are sacrificing profitability and shareholder returns to achieve that growth. We will use EBITDA margin and Return on Investment (ROI), which control for differences in capital structure between the two companies, to measure profitability and return., compared to an EBITDA margin of 14.37% for Gartner, Inc. (IT). CVLT’s ROI is -0.50% while IT has a ROI of 7.70%. The interpretation is that IT’s business generates a higher return on investment than CVLT’s.

Cash Flow

Cash is king when it comes to investing. CVLT’s free cash flow (“FCF”) per share for the trailing twelve months was +0.52. Comparatively, IT’s free cash flow per share was +2.02. On a percent-of-sales basis, CVLT’s free cash flow was 0% while IT converted 4.58% of its revenues into cash flow. This means that, for a given level of sales, IT is able to generate more free cash flow for investors.

Liquidity and Financial Risk

Liquidity and leverage ratios are important because they reveal the financial health of a company. CVLT has a current ratio of 2.00 compared to 0.70 for IT. This means that CVLT can more easily cover its most immediate liabilities over the next twelve months. CVLT’s debt-to-equity ratio is 0.00 versus a D/E of 2.37 for IT. IT is therefore the more solvent of the two companies, and has lower financial risk.

Valuation

CVLT trades at a forward P/E of 29.24, a P/B of 6.07, and a P/S of 3.29, compared to a forward P/E of 40.07, a P/B of 15.68, and a P/S of 3.47 for IT. CVLT is the cheaper of the two stocks on an earnings, book value and sales basis. Given that earnings are what matter most to investors, analysts tend to place a greater weight on the P/E.

Analyst Price Targets and Opinions

When investing it’s crucial to distinguish between price and value. As Warren Buffet said, “price is what you pay, value is what you get”. CVLT is currently priced at a -9.35% to its one-year price target of 55.00. Comparatively, IT is 0.49% relative to its price target of 159.75. This suggests that CVLT is the better investment over the next year.

Risk and Volatility

To gauge the market risk of a particular stock, investors use beta. Stocks with a beta above 1 are more volatile than the market as a whole. Conversely, a beta below 1 implies below average systematic risk. CVLT has a beta of 1.13 and IT’s beta is 1.23. CVLT’s shares are therefore the less volatile of the two stocks.

Insider Activity and Investor Sentiment

Short interest, or the percentage of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. CVLT has a short ratio of 3.50 compared to a short interest of 6.09 for IT. This implies that the market is currently less bearish on the outlook for CVLT.

Summary

Commvault Systems, Inc. (NASDAQ:CVLT) beats Gartner, Inc. (NYSE:IT) on a total of 9 of the 14 factors compared between the two stocks. CVLT is growing fastly, higher liquidity and has lower financial risk. In terms of valuation, CVLT is the cheaper of the two stocks on an earnings, book value and sales basis, CVLT is more undervalued relative to its price target. Finally, CVLT has better sentiment signals based on short interest.

READ ALSO

DNA Test Kits Market to Witness Robust Expansion by 2027 with Top Key players like Maj Ancestry, 23andMe, MyHeritage Ltd, Gene by Gene, Living DNA Ltd, Helix OpCo, Veritas, FitnessGenes

Nonwoven Fabric Equipment Market 2021 Strategic Analysis, Growth Drivers, Industry Trends, Demand and Future Opportunities till 2026 |Oerlikon, Rieter, Picanol, Toyota Industries, etc – KSU

Related Posts

DNA Test Kits Market to Witness Robust Expansion by 2027 with Top Key players like Maj Ancestry, 23andMe, MyHeritage Ltd, Gene by Gene, Living DNA Ltd, Helix OpCo, Veritas, FitnessGenes
Latest News

DNA Test Kits Market to Witness Robust Expansion by 2027 with Top Key players like Maj Ancestry, 23andMe, MyHeritage Ltd, Gene by Gene, Living DNA Ltd, Helix OpCo, Veritas, FitnessGenes

January 25, 2021
Nonwoven Fabric Equipment Market 2021 Strategic Analysis, Growth Drivers, Industry Trends, Demand and Future Opportunities till 2026 |Oerlikon, Rieter, Picanol, Toyota Industries, etc – KSU
Latest News

Nonwoven Fabric Equipment Market 2021 Strategic Analysis, Growth Drivers, Industry Trends, Demand and Future Opportunities till 2026 |Oerlikon, Rieter, Picanol, Toyota Industries, etc – KSU

January 25, 2021
Oil and Gas Water Purification System Market | Company Challenges And Essential Success Factors- Veolia Environment S.A, Suez Environment, Schlumberger Limited, Weatherford International Ltd., etc – KSU
Latest News

Natural Shampoo(Organic Shampoo) Market Size 2021 Demand, Global Trend, News, Business Growth, Top Key Players KOSE, P&G, Jason Natural, Avalon Natural Products, etc – KSU

January 25, 2021
Comprehensive Report on Intramedullary Nails Market 2021 | Size, Growth, Demand, Opportunities & Forecast To 2027
Latest News

Comprehensive Report on Intramedullary Nails Market 2021 | Size, Growth, Demand, Opportunities & Forecast To 2027

January 25, 2021
Compressor Oil Market Insights, Industry Outlook, Growing Trends and Demands 2020 to 2025 – The Courier
Latest News

Compressor Oil Market Insights, Industry Outlook, Growing Trends and Demands 2020 to 2025 – The Courier

January 25, 2021
Oil and Gas Water Purification System Market | Company Challenges And Essential Success Factors- Veolia Environment S.A, Suez Environment, Schlumberger Limited, Weatherford International Ltd., etc – KSU
Latest News

Oil and Gas Water Purification System Market | Company Challenges And Essential Success Factors- Veolia Environment S.A, Suez Environment, Schlumberger Limited, Weatherford International Ltd., etc – KSU

January 25, 2021
Next Post
Overview, SWOT Analysis, Top Manufactures, Industry Demand, Growth Trends, Opportunity, Forecast 2025 – The Chicago Sentinel

Overview, SWOT Analysis, Top Manufactures, Industry Demand, Growth Trends, Opportunity, Forecast 2025 – The Chicago Sentinel

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

‘Vatican Blackout’ Trends on Twitter as Trigger-Happy Users Try to Link It with US Election Fraud

‘Vatican Blackout’ Trends on Twitter as Trigger-Happy Users Try to Link It with US Election Fraud

January 10, 2021
Global Food Authenticity Industry

Fifth Third Bank Partners with Cardtronics to Enhance Brand Visibility in Carolinas through ATM Branding Program

February 4, 2020
Horowitz: Asian-American researcher fired from Michigan State administration for advancing facts about police shootings

Horowitz: Asian-American researcher fired from Michigan State administration for advancing facts about police shootings

July 8, 2020
Digital Learning Market 2020 industry report explores segmented by growth opportunities, emerging-trends, and industry verticals till 2025

Online Brand Protection Software Market report reviews size, share, analysis, trends, growth and forecast 2025

March 6, 2020
Online Brand Protection Software: Market with Coronavirus Impact Analysis | Industry Business Outlook, Revenue, Trends and Forecasts 2024

Online Brand Protection Software: Market with Coronavirus Impact Analysis | Industry Business Outlook, Revenue, Trends and Forecasts 2024

July 7, 2020

EDITOR'S PICK

Electric Bus and Hybrid Bus Market Current Trends, SWOT Analysis, Strategies, Industry Challenges, Business Overview and Forecast Research Study

November 4, 2020
Doubts Related to the Field Survey Management Explained in the Report with Major Key Companies like Nielsen Holdings, Kantar TNS, GfK, IRI Consultants, comScore, IT, Research & Metadata Solutions (IRMS), The Brenett Group – Owned

Doubts Related to the Field Survey Management Explained in the Report with Major Key Companies like Nielsen Holdings, Kantar TNS, GfK, IRI Consultants, comScore, IT, Research & Metadata Solutions (IRMS), The Brenett Group – Owned

August 4, 2020
Aurora Cannabis to Enter US with Acquisition of CBD Brand Reliva

Aurora Cannabis to Enter US with Acquisition of CBD Brand Reliva

May 22, 2020
Laminated Flexible Press Market Research Report And Predictive Business Strategy By 2026

Power Management Development Boards Market Size 2020-2026 Review, Key Findings, Growth Strategy, Developing Technologies, Trends And Global Forecast By Regions

September 4, 2020

Categories

  • Consumer Research
  • Data Analysis
  • Data Collection
  • Industry Research
  • Latest News
  • Market Insights
  • Marketing Research
  • Survey Research
  • Uncategorized

Recent Posts

  • How to Build an Online Brand Using Social Media
  • [Full text] The Clinicians’ Satisfaction with Clinical Pathway Implementatio
  • [Full text] Does High Public Trust Amplify Compliance with Stringent COVID-19 Gove
  • Privacy Policy
  • Terms of Use
  • Antispam
  • DMCA
  • Contact Us

Copyright © 2020 Globalresearchsyndicate.com.

No Result
View All Result
  • Latest News
  • Consumer Research
  • Survey Research
  • Marketing Research
  • Industry Research
  • Data Collection
  • More
    • Data Analysis
    • Market Insights

Copyright © 2020 Globalresearchsyndicate.com.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In