Contrasting Asana (NYSE:ASAN) and PTC (NASDAQ:PTC)

by · The Markets Daily

PTC (NASDAQ:PTCGet Free Report) and Asana (NYSE:ASANGet Free Report) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares PTC and Asana’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
PTC41.67%25.31%14.55%
Asana-18.62%-80.33%-14.19%

Valuation & Earnings

This table compares PTC and Asana”s revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
PTC$2.74 billion5.38$734.00 million$10.3413.14
Asana$790.81 million2.75-$189.02 million($0.66)-14.40

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PTC and Asana, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
PTC16702.43
Asana28402.14

PTC currently has a consensus target price of $170.14, suggesting a potential upside of 25.21%. Asana has a consensus target price of $9.95, suggesting a potential upside of 4.73%. Given PTC’s stronger consensus rating and higher possible upside, analysts plainly believe PTC is more favorable than Asana.

Insider and Institutional Ownership

95.1% of PTC shares are held by institutional investors. Comparatively, 26.2% of Asana shares are held by institutional investors. 0.3% of PTC shares are held by company insiders. Comparatively, 87.5% of Asana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

PTC has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Asana has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Summary

PTC beats Asana on 13 of the 14 factors compared between the two stocks.

About PTC

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PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

About Asana

(Get Free Report)

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. Its platform helps organizations to orchestrate work from daily tasks to cross-functional strategic initiatives; manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones; and communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights. The company serves customers in various industries, such as technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.