New Relic (NYSE:NEWR) and Adstar (OTCMKTS:ADST) Financial Review

Adstar (OTCMKTS:ADSTGet Rating) and New Relic (NYSE:NEWRGet Rating) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

88.2% of New Relic shares are held by institutional investors. 22.6% of Adstar shares are held by insiders. Comparatively, 22.0% of New Relic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Adstar and New Relic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adstar N/A N/A N/A N/A N/A
New Relic $785.52 million 3.97 -$250.40 million ($3.88) -12.02

Adstar has higher earnings, but lower revenue than New Relic.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Adstar and New Relic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adstar 0 0 0 0 N/A
New Relic 0 4 3 0 2.43

New Relic has a consensus target price of $83.30, suggesting a potential upside of 78.68%. Given New Relic’s higher probable upside, analysts plainly believe New Relic is more favorable than Adstar.

Profitability

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

Net Margins Return on Equity Return on Assets
Adstar N/A N/A N/A
New Relic -31.88% -74.08% -18.60%

Adstar Company Profile (Get Rating)

AdStar, Inc. engages in the provision of advertising technology services to publishers. It focuses on its application service provider. The company was founded by Leslie Bernhard and Eli Rousso in 1986 and is headquartered in North Merrick, NY.

New Relic Company Profile (Get Rating)

New Relic, Inc., a software-as-a-service company, provides platform for engineers to plan, build, deploy, and operate software worldwide. It offers a suite of products on its open and extensible cloud-based platform, New Relic One Platform, which enables users to collect, store, and analyze telemetry data flowing through and about their software. The company also provides prebuilt dashboards and visualizations, as well as the ability to search across data types, create customized dashboards, and build applications that can be shared and customized by other users. In addition, it offers customers with software code to add to their applications and infrastructure; open data application performance interfaces, and software development kits, as well as open source connectors and technologies for customers, partners, and third-party developers to extend its platform into their products; cloud-based architecture and big data database; and New Relic Application Performance Monitoring, Mobile, Browser, Synthetics, Infrastructure, and Insights products for analyzing data. Further, the company provides New Relic chart builder, dashboards, and programmability features that allow customers to use connected data to build visuals; New Relic Applied Intelligence to spot abnormal behavior across billions of pieces of data; and New Relic Alerts, which provides a centralized notification system. It sells its products through direct sales organizations, and online and offline sales. The company was founded in 2007 and is headquartered in San Francisco, California.

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