RealNetworks (NASDAQ:RNWK) and Computer Task Group (NASDAQ:CTG) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Valuation and Earnings
This table compares RealNetworks and Computer Task Group’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
RealNetworks
$78.72 million
1.29
-$16.30 million
N/A
N/A
Computer Task Group
$301.21 million
0.22
$800,000.00
$0.22
20.77
Computer Task Group has higher revenue and earnings than RealNetworks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for RealNetworks and Computer Task Group, as reported by MarketBeat.
Sell Ratings
Hold Ratings
Buy Ratings
Strong Buy Ratings
Rating Score
RealNetworks
0
0
0
0
N/A
Computer Task Group
0
0
2
0
3.00
Computer Task Group has a consensus target price of $9.50, indicating a potential upside of 107.88%. Given Computer Task Group’s higher probable upside, analysts clearly believe Computer Task Group is more favorable than RealNetworks.
Institutional & Insider Ownership
49.7% of RealNetworks shares are owned by institutional investors. Comparatively, 53.2% of Computer Task Group shares are owned by institutional investors. 39.5% of RealNetworks shares are owned by company insiders. Comparatively, 12.3% of Computer Task Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares RealNetworks and Computer Task Group’s net margins, return on equity and return on assets.
Net Margins
Return on Equity
Return on Assets
RealNetworks
-24.01%
-30.83%
-21.89%
Computer Task Group
0.62%
5.13%
2.84%
Volatility and Risk
RealNetworks has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Computer Task Group has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Summary
Computer Task Group beats RealNetworks on 8 of the 11 factors compared between the two stocks.
RealNetworks Company Profile
RealNetworks, Inc. provides network-delivered digital media applications and services to manage, play, and share digital media. Its Consumer Media segment offers RealPlayer media player software, which enables consumers to discover, play, download, manage and edit digital video, stream audio and video, download and save photos and videos from the Web, transfer and share content on social networks, and edit their own photo and video content. This segment also licenses its technology to electronic equipment, microchip, and integrated circuit manufacturers. The company’s Mobile Services segment provides digital media services to mobile and online service providers as software as a service offerings, which include RealTimes, a photo and video sharing platform, offers to wireless carriers for integration in their hosted cloud solutions; Kontxt, a text message management, anti-spam, and classification product; ringback tone that enables callers to hear subscriber-selected music or messages instead of the traditional electronic ringing; intercarrier messaging services; and business intelligence, and subscriber management and billing for the carriers. Its Games segment develops, publishes, and distributes casual games, including time-management, board, card, puzzle, word, and hidden-object games. It offers its casual games through mobile devices, digital downloads, and subscription play. The company also develops and markets software products and services that enable the creation, distribution, and consumption of digital media, including audio and video. The company provides its products and services through direct and indirect channels comprising public relations, trade shows, events, and speaking opportunities; online channels; third party distribution partners; and third-party distribution channels, such as application storefronts, search engines, online portals, and content publishers. RealNetworks, Inc. was founded in 1994 and is headquartered in Seattle, Washington.
Computer Task Group Company Profile
Computer Task Group, Incorporated, together with its subsidiaries, operates as an information technology solutions and staffing services company in North America, Europe, and India. Its IT solutions include the implementation and optimization of packaged software applications; development and deployment of customized software and solutions designed to fit the needs of a specific client or market; and design and distribution of complex technology components, as well as offers consulting services. The company’s IT and other staffing services include recruiting, retaining, and managing IT and other talent primarily for technology service providers and other companies with multiple locations. It serves technology service and healthcare providers, and health insurers, as well as manufacturing, life sciences, energy, and financial services companies. Computer Task Group, Incorporated was founded in 1966 and is headquartered in Buffalo, New York.
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