Critical Analysis: Aurora Innovation (NASDAQ:AUR) and SofTech (OTCMKTS:SOFT)

Aurora Innovation (NASDAQ:AURGet Rating) and SofTech (OTCMKTS:SOFTGet Rating) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Institutional and Insider Ownership

22.4% of Aurora Innovation shares are held by institutional investors. 18.8% of Aurora Innovation shares are held by insiders. Comparatively, 28.6% of SofTech shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Aurora Innovation and SofTech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aurora Innovation N/A -20.25% -14.48%
SofTech N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Aurora Innovation and SofTech, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aurora Innovation 0 1 1 0 2.50
SofTech 0 0 0 0 N/A

Aurora Innovation presently has a consensus price target of $9.13, suggesting a potential upside of 256.45%. Given Aurora Innovation’s higher probable upside, analysts plainly believe Aurora Innovation is more favorable than SofTech.

Earnings and Valuation

This table compares Aurora Innovation and SofTech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aurora Innovation $82.54 million 35.27 -$755.45 million N/A N/A
SofTech N/A N/A N/A N/A N/A

SofTech has lower revenue, but higher earnings than Aurora Innovation.

Risk and Volatility

Aurora Innovation has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, SofTech has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500.

Summary

Aurora Innovation beats SofTech on 5 of the 8 factors compared between the two stocks.

About Aurora Innovation

(Get Rating)

Aurora Innovation, Inc. operates as a self-driving technology company in the United States. It focuses on developing Aurora Driver, a platform that brings a suite of self-driving hardware, software, and data services together to adapt and interoperate passenger vehicles, light commercial vehicles, and trucks. The company was founded in 2017 and is headquartered in Pittsburgh, Pennsylvania.

About SofTech

(Get Rating)

SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation's Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.

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