Critical Analysis: SeaChange International (SEAC) vs. KVH Industries (KVHI)

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SeaChange International (NASDAQ: SEAC) and KVH Industries (NASDAQ:KVHI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

SeaChange International has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, KVH Industries has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for SeaChange International and KVH Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SeaChange International 0 0 3 0 3.00
KVH Industries 0 0 1 0 3.00

SeaChange International presently has a consensus price target of $4.25, indicating a potential upside of 26.49%. Given SeaChange International’s higher probable upside, equities analysts clearly believe SeaChange International is more favorable than KVH Industries.

Earnings and Valuation

This table compares SeaChange International and KVH Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SeaChange International $80.27 million 1.49 $13.49 million $0.11 30.55
KVH Industries $160.09 million 1.44 -$11.03 million ($0.13) -101.15

SeaChange International has higher earnings, but lower revenue than KVH Industries. KVH Industries is trading at a lower price-to-earnings ratio than SeaChange International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SeaChange International and KVH Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SeaChange International 17.06% -0.37% -0.25%
KVH Industries -6.28% -0.92% -0.49%

Insider and Institutional Ownership

73.9% of SeaChange International shares are held by institutional investors. Comparatively, 54.6% of KVH Industries shares are held by institutional investors. 2.9% of SeaChange International shares are held by insiders. Comparatively, 9.2% of KVH Industries 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

SeaChange International beats KVH Industries on 9 of the 12 factors compared between the two stocks.

About SeaChange International

SeaChange International, Inc. provides multiscreen video, advertising, and premium over the top (OTT) video products and services that facilitate the aggregation, licensing, management, and distribution of video and television advertising content to cable system operators, satellite operators, and telecommunications and media companies worldwide. It offers video products, including SeaChange Adrenalin, a multiscreen back office platform that enables service providers to manage, monetize, and deliver a seamless viewing experience across televisions, personal computers (PCs), tablets, smartphones, and other IP-enabled devices; and SeaChange AssetFlow, a content management solution that is used to receive, manage, and publish content for viewing on televisions, tablets, PCs, and other consumer devices, as well as SeaChange Rave, an OTT video platform that provides managed services for media companies and service providers. The company also provides advertising products, such as SeaChange Infusion, an advanced advertising platform to maximize advertising revenue across multiscreen, broadcast, on-demand, and OTT viewing. In addition, it provides Nucleus, a video gateway software that ports to third-party set-top boxes, or other customer premises equipment hardware and system on a chip, as well as acts as a hub for various video distribution to any IP-connected device throughout the home, such as tablets, smart phones, and game consoles; and SeaChange NitroX, an user experience product that empower service providers and content owners to optimize live and on-demand video consumption on multiscreen and OTT services. Further, the company provides professional, and maintenance and support services, as well as managed services. It sells and markets its products and services through a direct sales organization, as well as to systems integrators and value-added resellers. SeaChange International, Inc. was founded in 1993 and is headquartered in Acton, Massachusetts.

About KVH Industries

KVH Industries, Inc. designs, develops, manufactures, and markets mobile connectivity products and services for the marine and land mobile markets in the United States and internationally. The company offers mobile satellite TV and communications products, including satellite TV antennas; two-way satellite communications systems; onboard V-IP terminals and hub equipment; network management hardware and software products for maritime communications; and Iridium OpenPort hardware products and services. It also offers airtime plans that enable customers to obtain Internet and voice services; and value-added, and news and radio content services. In addition, the company provides navigation, guidance, and stabilization products for the commercial and defense markets comprising precision fiber optic gyro-based systems that enable platform and optical stabilization, navigation, pointing, and guidance; tactical navigation systems for tactical trucks and light armored vehicles; and commercial products, such as navigation and positioning systems for various applications consisting of precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics, and optical stabilization applications. Further, it offers content, maritime news, sporting content, and television programming delivery services; movie distribution services; maritime e-learning content and related services; and services and support for the mini-VSAT Broadband solution. The company sells its mobile communications products through a network of independent retailers, chain stores, and distributors; and navigation products directly to the United States and foreign governments, and government contractors, as well as through authorized independent sales representatives. The company also sells and leases its products directly to end users. KVH Industries, Inc. was founded in 1978 and is headquartered in Middletown, Rhode Island.

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