news.cmlviz.com
menu
share

Avid Technology Inc versus USA Technologies Inc Head to Head Compare


Date Published:

This is a head to head compare of Avid Technology Inc (NASDAQ:AVID) and USA Technologies Inc (NASDAQ:USAT) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.



Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.


Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
AVID +1.0% -31.6% -17.2%
USAT +3.5% -11.4% +3.5%

Avid Technology Inc has a substantially higher fundamental rating then USA Technologies Inc which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Avid Technology Inc has substantially higher revenue in the last year than USA Technologies Inc although both companies are still relatively small. Raw revenue comps do not affect the head to head rating.
Revenue

AVID is showing a profit while USAT has negative earnings over the last year.

Net Income


USAT generates massively larger revenue per employee ($1.1 million) than AVID ($332,000).

Revenue per Employee
($ Millions)


➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Avid Technology Inc generates $1.13 in revenue for every $1 of expense, notably higher than USA Technologies Inc's $1.01.

Revenue per Dollar of Expense


AVID generates $0.03 in levered free cash flow for every $1 of revenue, massively higher than USAT's $0.00.

Free Cash Flow
per Dollar of Revenue


➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies are growing revenue. USA Technologies Inc is growing revenue massively faster than Avid Technology Inc but on a small revenue base.

Revenue Growth


For every $1 in revenue, the stock market prices in $0.45 in market cap for AVID and $2.00 in market cap for USAT.

Price to Sales

Avid Technology Inc (NASDAQ:AVID)
defeats
USA Technologies Inc (NASDAQ:USAT) : 62 to 38