CommVault Systems (NASDAQ:CVLT) versus Pixelworks (NASDAQ:PXLW) Critical Review

Pixelworks (NASDAQ:PXLW – Get Free Report) and CommVault Systems (NASDAQ:CVLT – Get Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Risk and Volatility

Pixelworks has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, CommVault Systems has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Pixelworks and CommVault Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pixelworks 1 0 2 0 2.33
CommVault Systems 0 10 10 1 2.57

Pixelworks presently has a consensus price target of $16.00, indicating a potential upside of 130.22%. CommVault Systems has a consensus price target of $152.62, indicating a potential upside of 4.29%. Given Pixelworks’ higher possible upside, research analysts clearly believe Pixelworks is more favorable than CommVault Systems.

Institutional & Insider Ownership

21.4% of Pixelworks shares are owned by institutional investors. Comparatively, 93.5% of CommVault Systems shares are owned by institutional investors. 4.7% of Pixelworks shares are owned by company insiders. Comparatively, 0.9% of CommVault Systems shares are owned 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.

Valuation and Earnings

This table compares Pixelworks and CommVault Systems”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pixelworks $690,000.00 60.94 -$22.50 million ($1.63) -4.26
CommVault Systems $1.18 billion 5.12 $70.66 million $1.57 93.22

CommVault Systems has higher revenue and earnings than Pixelworks. Pixelworks is trading at a lower price-to-earnings ratio than CommVault Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pixelworks and CommVault Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pixelworks N/A -28.77% -14.64%
CommVault Systems 5.62% 88.75% 5.59%

Summary

CommVault Systems beats Pixelworks on 11 of the 15 factors compared between the two stocks.

About Pixelworks

(Get Free Report)

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.

About CommVault Systems

(Get Free Report)

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.

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