Unisys (NYSE:UIS – Get Rating) and Aurora Innovation (NASDAQ:AUR – Get Rating) 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 earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Earnings and Valuation
This table compares Unisys and Aurora Innovation’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Unisys | $1.98 billion | 0.15 | -$106.00 million | ($3.30) | -1.31 |
Aurora Innovation | $68.00 million | 25.00 | -$1.72 billion | ($1.61) | -0.89 |
Unisys has higher revenue and earnings than Aurora Innovation. Unisys is trading at a lower price-to-earnings ratio than Aurora Innovation, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Unisys | 0 | 4 | 0 | 0 | 2.00 |
Aurora Innovation | 0 | 1 | 1 | 0 | 2.50 |
Unisys currently has a consensus target price of $5.00, indicating a potential upside of 15.74%. Aurora Innovation has a consensus target price of $5.25, indicating a potential upside of 264.58%. Given Aurora Innovation’s stronger consensus rating and higher probable upside, analysts plainly believe Aurora Innovation is more favorable than Unisys.
Volatility and Risk
Unisys has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Aurora Innovation has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.
Profitability
This table compares Unisys and Aurora Innovation’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Unisys | -10.93% | -346.33% | 6.56% |
Aurora Innovation | -2,546.55% | -38.10% | -34.13% |
Insider and Institutional Ownership
97.7% of Unisys shares are held by institutional investors. Comparatively, 46.5% of Aurora Innovation shares are held by institutional investors. 2.3% of Unisys shares are held by company insiders. Comparatively, 17.7% of Aurora Innovation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Aurora Innovation beats Unisys on 9 of the 14 factors compared between the two stocks.
About Unisys
Unisys Corp. is an information technology solutions company that delivers successful outcomes for the most demanding businesses and governments. The firm offers digital workplace solutions, cloud and infrastructure solutions, enterprise computing solutions and business process solutions. It operates through the following business segments: Digital Workplace Solutions (DWS), Cloud & Infrastructure Solutions (C&I), and Enterprise Computing Solutions (ECS). The Digital Workplace Solutions segment provides solutions that transform digital workplaces securely and create exceptional end-user experiences. The Cloud & Infrastructure segment provides solutions that drive modern IT service platforms, cloud applications development, intelligent services, and cybersecurity services. The Enterprise Computing Solutions segment provides solutions that harness secure, continuous high-intensity computing and enable digital services through software-defined operating environments. The company was founded in 1986 and is headquartered in Blue Bell, PA.
About Aurora Innovation
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.
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