Kaltura (NASDAQ:KLTR – Get Free Report) and Pixelworks (NASDAQ:PXLW – Get Free Report) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Kaltura and Pixelworks, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kaltura | 1 | 0 | 1 | 0 | 2.00 |
| Pixelworks | 1 | 0 | 1 | 0 | 2.00 |
Kaltura currently has a consensus target price of $3.00, suggesting a potential upside of 118.98%. Pixelworks has a consensus target price of $12.00, suggesting a potential upside of 124.30%. Given Pixelworks’ higher probable upside, analysts plainly believe Pixelworks is more favorable than Kaltura.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kaltura | $180.85 million | 1.16 | -$12.07 million | ($0.09) | -15.22 |
| Pixelworks | $690,000.00 | 46.91 | -$22.50 million | ($1.63) | -3.28 |
Kaltura has higher revenue and earnings than Pixelworks. Kaltura is trading at a lower price-to-earnings ratio than Pixelworks, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Kaltura has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Pixelworks has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.
Institutional & Insider Ownership
30.8% of Kaltura shares are held by institutional investors. Comparatively, 21.4% of Pixelworks shares are held by institutional investors. 16.3% of Kaltura shares are held by company insiders. Comparatively, 4.7% of Pixelworks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Kaltura and Pixelworks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kaltura | -6.92% | -51.05% | -2.33% |
| Pixelworks | N/A | -28.77% | -14.64% |
Summary
Kaltura beats Pixelworks on 6 of the 11 factors compared between the two stocks.
About Kaltura
Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.
About Pixelworks
Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets in the United States, Japan, China, Taiwan, Korea, and Europe. The company offers imageprocessor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; visual processor integrated circuits that works with a mobile application processor; and transcoder integrated circuits which includes software that control the operations and signal processing for converting multiple bitrates, resolutions and codecs to provide bandwidth efficient video transmissions based on industry standard protocols. It also provides software and platform licensing products comprising Pixelworks Pro Software, a software that enables development and customize the look and feel of mobile products by use of various features, such as absolute color accuracy, HDR tone mapping, SDR-to-HDR conversion, and others; and TrueCut Motion Platform, content creation tool which provides the ability to dial in a motion look on a shot-by-shot basis. The company distributes its products to integrators, branded manufacturers, and branded suppliers. Pixelworks, Inc. was founded in 1997 and is based in Portland, Oregon.
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