Elastic (NYSE:ESTC – Get Free Report) and Digital Turbine (NASDAQ:APPS – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and price targets for Elastic and Digital Turbine, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elastic | 1 | 11 | 17 | 0 | 2.55 |
| Digital Turbine | 1 | 1 | 1 | 1 | 2.50 |
Elastic currently has a consensus price target of $95.25, indicating a potential upside of 78.71%. Digital Turbine has a consensus price target of $7.75, indicating a potential upside of 148.00%. Given Digital Turbine’s higher probable upside, analysts plainly believe Digital Turbine is more favorable than Elastic.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elastic | $1.48 billion | 3.72 | -$108.11 million | ($0.80) | -66.62 |
| Digital Turbine | $490.51 million | 0.76 | -$92.10 million | ($0.48) | -6.51 |
Digital Turbine has lower revenue, but higher earnings than Elastic. Elastic is trading at a lower price-to-earnings ratio than Digital Turbine, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Elastic and Digital Turbine’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elastic | -5.04% | -2.34% | -0.84% |
| Digital Turbine | -8.93% | 21.26% | 4.17% |
Risk and Volatility
Elastic has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Digital Turbine has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500.
Institutional and Insider Ownership
97.0% of Elastic shares are held by institutional investors. Comparatively, 63.7% of Digital Turbine shares are held by institutional investors. 12.7% of Elastic shares are held by company insiders. Comparatively, 6.1% of Digital Turbine 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
Digital Turbine beats Elastic on 8 of the 15 factors compared between the two stocks.
About Elastic
Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data. The company's Elastic Stack product portfolio comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Elastic Agent that offers integrated host protection and central management services; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems from a multitude of sources simultaneously. It also provides software solutions on the Elastic Stack that address cases, including search applications, workplace search, logs, metrics, application performance monitoring, synthetic monitoring, security information and event management (SIEM), endpoint security, extended detection and response, and cloud security. The company was incorporated in 2012 and is based in Amsterdam, the Netherlands.
About Digital Turbine
Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.
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