Red Hat (RHT) & Telaria (TLRA) Financial Survey

Red Hat (NYSE: RHT) and Telaria (NYSE:TLRA) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Red Hat and Telaria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Red Hat 12.14% 26.23% 7.66%
Telaria 1.74% -16.25% -8.70%

Analyst Recommendations

This is a summary of current ratings and target prices for Red Hat and Telaria, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red Hat 1 8 22 0 2.68
Telaria 0 0 2 0 3.00

Red Hat currently has a consensus target price of $125.31, suggesting a potential upside of 3.53%. Telaria has a consensus target price of $4.63, suggesting a potential upside of 11.71%. Given Telaria’s stronger consensus rating and higher probable upside, analysts plainly believe Telaria is more favorable than Red Hat.

Institutional & Insider Ownership

93.6% of Red Hat shares are owned by institutional investors. Comparatively, 41.3% of Telaria shares are owned by institutional investors. 0.7% of Red Hat shares are owned by company insiders. Comparatively, 8.2% of Telaria shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Red Hat has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Telaria has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Valuation and Earnings

This table compares Red Hat and Telaria’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Red Hat $2.41 billion 8.95 $253.70 million $1.84 65.78
Telaria $166.76 million 1.27 -$20.94 million $0.04 103.53

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

Summary

Red Hat beats Telaria on 9 of the 13 factors compared between the two stocks.

Red Hat Company Profile

Red Hat, Inc. (Red Hat) provides open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, management, middleware, cloud, mobile and storage technologies. Red Hat operates through three geographical segments: the Americas, including the United States, Canada and Latin America; EMEA, including Europe, Middle East and Africa, and Asia Pacific. Its products and services include infrastructure-related offerings, application development-related and other technology offerings, and consulting, support and training services. Its infrastructure-related offerings include Red Hat Enterprise Linux, Red Hat Satellite and Red Hat Enterprise Virtualization. Its application development-related and other technology offerings include Red Hat JBoss Middleware, Red Hat cloud offerings, Red Hat Mobile and Red Hat Storage. Its consulting services include upgrade planning, platform migrations, solution integration and application development.

Telaria Company Profile

Telaria, Inc., formerly Tremor Video, Inc., is a software company. The Company provides a data-driven software platform. The Company’s Telaria is designed to monetize and manage premium video inventory wherever and however audiences are watching. The solutions offered by the Company includes programmatic live television, market updates, device-specific reporting, over-the-top content (OTT) specific features, monitor buying patterns, revenue capture, live insights and letter revenue decisions. Its other solutions include server to server connections, campaign diagnostics, custom audiences, inventory packages, review and approve advertisement creative, communicate demand requirements, discoverability and maintenance of publisher brand integrity.

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