Changyou.Com (CYOU) vs. National Instruments (NATI) Head-To-Head Comparison

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Changyou.Com (NASDAQ:CYOU) and National Instruments (NASDAQ:NATI) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Changyou.Com and National Instruments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Changyou.Com 8.28% 3.92% 2.51%
National Instruments 5.50% 14.02% 10.20%

Volatility & Risk

Changyou.Com has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, National Instruments has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Dividends

National Instruments pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. Changyou.Com does not pay a dividend. National Instruments pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Instruments has increased its dividend for 4 consecutive years.

Insider & Institutional Ownership

26.4% of Changyou.Com shares are owned by institutional investors. Comparatively, 76.8% of National Instruments shares are owned by institutional investors. 8.0% of National Instruments shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Changyou.Com and National Instruments’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Changyou.Com $580.26 million 1.56 $108.83 million $2.04 8.43
National Instruments $1.29 billion 5.09 $52.41 million $0.94 52.72

Changyou.Com has higher earnings, but lower revenue than National Instruments. Changyou.Com is trading at a lower price-to-earnings ratio than National Instruments, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Changyou.Com and National Instruments, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Changyou.Com 1 2 0 0 1.67
National Instruments 0 2 1 0 2.33

Changyou.Com presently has a consensus price target of $33.43, indicating a potential upside of 94.38%. National Instruments has a consensus price target of $48.00, indicating a potential downside of 3.15%. Given Changyou.Com’s higher probable upside, equities analysts clearly believe Changyou.Com is more favorable than National Instruments.

Summary

National Instruments beats Changyou.Com on 12 of the 17 factors compared between the two stocks.

About Changyou.Com

Changyou.com Limited develops and operates online games in the People's Republic of China. The company operates through Online Game, Platform Channel, and Others segments. It develops, operates, and licenses online games, including interactive online games that are accessed and played simultaneously by various game players through personal computers; and mobile games played on mobile devices. The company also operates 17173.com Website, an information portal that provides news, electronic forums, online videos, and other information services on online games to game players; and offers various software applications for PCs and mobile devices, as well as purchases pre-film cinema advertising slots from movie theater operators for advertisers. As of December 31, 2017, it had approximately 5.5 million total average monthly active accounts; and 2.0 million total active paying accounts. The company was founded in 2003 and is headquartered in Beijing, the People's Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.

About National Instruments

National Instruments Corporation designs, manufactures, and sells systems to engineers and scientists worldwide. It offers LabVIEW, a system design software for measurement, automation, and control; LabVIEW Real-Time and LabVIEW FPGA, which are software add-ons to LabVIEW; LabVIEW Communications System Design Suite for wireless prototyping; LabWindows/CVI for creating test and control applications; and Measurement Studio consisting of measurement and automation add-on libraries, and additional tools for programmers. The company also provides software products, such as NI TestStand to test and measure applications in a manufacturing environment; NI VeriStand software to configure real-time testing applications; NI DIAdem, which provides technical data management, analysis, and report generation tools; NI InsightCM Enterprise for monitoring critical and ancillary rotating equipment; NI Multisim circuit design software; and NI SystemLink, a systems management software. In addition, it offers hardware products and related driver software, such as data acquisition, PXI chassis and controllers, modular instruments, image acquisition, motion control, distributed I/O, industrial communications interfaces, general purpose interface bus interfaces, embedded control hardware/software, and VME extension for instrumentation controllers. Further, the company provides NI semiconductor test systems; NI education platform comprising software, hardware, and courseware for students; software and hardware products for teaching; hardware and software maintenance services; and training and certification services. It serves advanced research, automotive, automated test equipment, consumer electronics, commercial aerospace, computers and electronics, continuous process manufacturing, education, government/defense, medical research/pharmaceutical, power/energy, semiconductors, and telecommunications industries. The company was founded in 1976 and is headquartered in Austin, Texas.

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