Comparing Informatica (NYSE:INFA) and PTC (NASDAQ:PTC)

Informatica (NYSE:INFA) and PTC (NASDAQ:PTC) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Valuation & Earnings

This table compares Informatica and PTC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Informatica	$1.60 billion	4.69	-$125.28 million	$0.21	116.75
PTC	$2.30 billion	9.79	$376.33 million	$3.11	60.12

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Informatica and PTC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Informatica	0	3	8	0	2.73
PTC	0	4	9	0	2.69

Informatica currently has a consensus target price of $33.27, indicating a potential upside of 35.72%. PTC has a consensus target price of $207.54, indicating a potential upside of 11.00%. Given Informatica’s stronger consensus rating and higher probable upside, equities analysts clearly believe Informatica is more favorable than PTC.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Informatica	3.89%	5.29%	2.37%
PTC	16.37%	14.63%	7.01%

Risk and Volatility

Informatica has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, PTC has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Institutional and Insider Ownership

98.5% of Informatica shares are owned by institutional investors. Comparatively, 95.1% of PTC shares are owned by institutional investors. 48.1% of Informatica shares are owned by company insiders. Comparatively, 0.3% of PTC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

PTC beats Informatica on 9 of the 14 factors compared between the two stocks.

About Informatica

Informatica Inc. develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide. Its platform includes a suite of interoperable data management products, including data integration products to ingest, transform, and integrate data; API and application integration products that enable users to create and manage APIs and integration processes for app-to-app synchronization, business process orchestration, B2B partner management, application development, and API management; data quality and observability products to profile, cleanse, standardize, observe, and monitor data to deliver accurate, complete, and consistent data; and master data management products to create an authoritative single source of truth of business-critical data. The company's platform also includes customer and business 360 application that allow business analysts to create 360-degree views of business data domains like customer, product, supplier, reference, and finance with simplified business user experiences; data catalog products that enables customers to quickly find, access, and understand enterprise data using a simple Google-like search experience; governance and privacy products that help users define policies, govern data, and ensure compliance with industry and corporate policies; and a data marketplace that delivers cloud shopping experience for data consumers and enables data sharing and AI models across organizations to facilitate data-driven decision making. It also offers maintenance and professional services. The company sells its products through its direct sales team. The company was founded in 1993 and is headquartered in Redwood City, California.

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.