Brightcove (NASDAQ:BCOV – Get Free Report) and AcuityAds (NYSE:ATY – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
85.6% of Brightcove shares are held by institutional investors. Comparatively, 8.7% of AcuityAds shares are held by institutional investors. 3.7% of Brightcove shares are held by company insiders. Comparatively, 12.0% of AcuityAds shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Brightcove and AcuityAds, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brightcove | 0 | 0 | 2 | 0 | 3.00 |
| AcuityAds | 0 | 0 | 3 | 0 | 3.00 |
Earnings & Valuation
This table compares Brightcove and AcuityAds’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brightcove | $211.01 million | 0.78 | -$9.02 million | ($0.59) | -6.44 |
| AcuityAds | $121.04 million | 0.86 | -$580,000.00 | ($0.01) | -184.00 |
AcuityAds has lower revenue, but higher earnings than Brightcove. AcuityAds is trading at a lower price-to-earnings ratio than Brightcove, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Brightcove and AcuityAds’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brightcove | -12.31% | -18.63% | -8.05% |
| AcuityAds | -1.39% | -5.84% | -4.46% |
Risk & Volatility
Brightcove has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, AcuityAds has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Summary
AcuityAds beats Brightcove on 9 of the 13 factors compared between the two stocks.
About Brightcove
Brightcove Inc. provides cloud-based streaming services. Its flagship product includes Video Cloud, an online video streaming platform that enables its customers to distribute high-quality video to internet-connected devices. The company also offers Brightcove Live, a solution for live streaming; Brightcove Beacon, an application that enables companies to launch over-the-top video experiences of multiple monetization models; Brightcove Player, a cloud-based technology for creating and managing video experiences; Zencoder, a cloud-based video encoding technology; and Brightcove Audience Insights, a business intelligence platform that provides actionable intelligence on viewers and subscribers. In addition, it provides video solutions, such as Brightcove Marketing Studio, which included Video Marketing Suite, a solution designed to address the needs of marketers to drive awareness, engagement, and conversion; Brightcove Communications Studio, which included Enterprise Video Suite, an enterprise-class platform that is designed to reduce the cost and complexity involved with internal video communications; Brightcove CorpTV, an application that enables marketing videos, product announcements, training programs, and other live and on-demand content; and Brightcove Virtual Events, a platform for customers to create bespoke, immersive live and always-on virtual experiences. The company serves media, broadcasters, publishers, sports and entertainment companies, fashion, faith-based institutions, retail and e-commerce platforms, and hi-tech organizations, governments, educational institutions, and hospitality brands. It also sells its products in the Americas, Europe, Asia Pacific, Japan, and the Middle East. Brightcove Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.
About AcuityAds
AcuityAds Holdings, Inc. engages in the provision of digital advertising solutions. It operates through the following geographical segments: Unites States, Canada, and Europe and Other. The company was founded by Tal Hayek, Nathan Mekuz, Rachel Kapcan, and Joe Ontman on October 9, 2009 and is headquartered in Toronto, Canada.
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