Reviewing WaveDancer (NASDAQ:WAVD) & PTC (NASDAQ:PTC)

WaveDancer (NASDAQ:WAVD) and PTC (NASDAQ:PTC) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WaveDancer	$7.74 million	0.68	-$2.03 million	N/A	N/A
PTC	$2.30 billion	9.64	$376.33 million	$3.11	59.34

PTC has higher revenue and earnings than WaveDancer.

Volatility and Risk

WaveDancer has a beta of 3.15, indicating that its share price is 215% more volatile than the S&P 500. Comparatively, PTC has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WaveDancer	-17.55%	-57.30%	-27.44%
PTC	16.37%	14.63%	7.01%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for WaveDancer and PTC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WaveDancer	0	0	0	0	0.00
PTC	0	4	9	0	2.69

PTC has a consensus price target of $207.54, suggesting a potential upside of 12.46%. Given PTC’s stronger consensus rating and higher possible upside, analysts clearly believe PTC is more favorable than WaveDancer.

Institutional & Insider Ownership

5.0% of WaveDancer shares are held by institutional investors. Comparatively, 95.1% of PTC shares are held by institutional investors. 22.7% of WaveDancer shares are held by insiders. Comparatively, 1.2% of PTC shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

PTC beats WaveDancer on 10 of the 12 factors compared between the two stocks.

About WaveDancer

WaveDancer, Inc. develops and maintains information technology systems in the United States. The company also modernizes client information systems; and offers other IT-related professional services to government and commercial organizations. In addition, it offers IT consulting, development, training, migration, and on-site project support; and software development, system modernizations, cloud services, and cybersecurity services. The company was formerly known as Information Analysis Incorporated and changed its name to WaveDancer, Inc. in December 2021. WaveDancer, Inc. was incorporated in 1979 and is headquartered in Fairfax, Virginia.

About PTC

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.