Critical Analysis: Brightcove (NASDAQ:BCOV) vs. Applied Digital (NASDAQ:APLD)

Brightcove (NASDAQ:BCOVGet Free Report) and Applied Digital (NASDAQ:APLDGet Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

Brightcove has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Applied Digital has a beta of 4.14, indicating that its share price is 314% more volatile than the S&P 500.

Insider and Institutional Ownership

85.7% of Brightcove shares are held by institutional investors. Comparatively, 53.8% of Applied Digital shares are held by institutional investors. 3.7% of Brightcove shares are held by insiders. Comparatively, 23.7% of Applied Digital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Brightcove and Applied Digital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brightcove 0 1 1 0 2.50
Applied Digital 0 0 4 0 3.00

Brightcove presently has a consensus target price of $4.00, suggesting a potential upside of 110.53%. Applied Digital has a consensus target price of $13.75, suggesting a potential upside of 224.29%. Given Applied Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Applied Digital is more favorable than Brightcove.

Valuation and Earnings

This table compares Brightcove and Applied Digital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brightcove $201.19 million 0.41 -$22.89 million ($0.54) -3.52
Applied Digital $55.39 million 9.34 -$44.65 million ($0.35) -12.11

Brightcove has higher revenue and earnings than Applied Digital. Applied Digital 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 Applied Digital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brightcove -11.38% -17.02% -7.22%
Applied Digital -28.94% -31.26% -10.20%

About Brightcove

(Get Free Report)

Brightcove Inc. provides cloud-based streaming services the Americas, Europe, the Asia Pacific, Japan, India, and the Middle East. It offers Video Cloud, an online video streaming platform that enables its customers to publish, deliver, and distribute high-quality video to internet-connected devices. The company's solutions and products comprise Brightcove Marketing Studio, a video streaming solution; Brightcove Communications Studio for marketers and corporate communications professionals; Brightcove Media Studio, a solution for over-the-top (OTT) video services, media publishers, and leading broadcasters to monetize their media, live stream at scale, and nurture their audience lifecycle; Brightcove Audience Insights, a customer data platform for video streaming businesses; Zencoder, a cloud-based video encoding service; and Brightcove Beacon, a platform that enables its customers to launch premium OTT video streaming experiences, as well as Brightcove Marketplace. It also provides ad monetization; professional; customer success, support, and documentation; online and onsite training; and video.js and developer solutions. The company serves media companies, broadcasters, digital publishers, sports and entertainment companies, fashion and hospitality brands, faith-based institutions, retail and e-commerce businesses, and technology organizations, as well as government agencies, educational institutions, and non-profit organizations. Brightcove Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.

About Applied Digital

(Get Free Report)

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

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