Activision Blizzard (NASDAQ:ATVI) and Shotspotter (NASDAQ:SSTI) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.
This is a summary of recent ratings and price targets for Activision Blizzard and Shotspotter, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Activision Blizzard currently has a consensus price target of $59.70, indicating a potential upside of 22.34%. Shotspotter has a consensus price target of $50.26, indicating a potential upside of 75.55%. Given Shotspotter’s higher possible upside, analysts plainly believe Shotspotter is more favorable than Activision Blizzard.
Insider & Institutional Ownership
85.7% of Activision Blizzard shares are owned by institutional investors. Comparatively, 70.4% of Shotspotter shares are owned by institutional investors. 1.3% of Activision Blizzard shares are owned by insiders. Comparatively, 11.4% of Shotspotter shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Activision Blizzard has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Shotspotter has a beta of 2.51, indicating that its stock price is 151% more volatile than the S&P 500.
Valuation and Earnings
This table compares Activision Blizzard and Shotspotter’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Activision Blizzard||$7.50 billion||4.99||$1.81 billion||$2.39||20.42|
|Shotspotter||$34.75 million||9.46||-$2.72 million||($0.26)||-110.12|
Activision Blizzard has higher revenue and earnings than Shotspotter. Shotspotter is trading at a lower price-to-earnings ratio than Activision Blizzard, indicating that it is currently the more affordable of the two stocks.
This table compares Activision Blizzard and Shotspotter’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Activision Blizzard pays an annual dividend of $0.37 per share and has a dividend yield of 0.8%. Shotspotter does not pay a dividend. Activision Blizzard pays out 15.5% of its earnings in the form of a dividend. Activision Blizzard has raised its dividend for 8 consecutive years.
Activision Blizzard beats Shotspotter on 12 of the 17 factors compared between the two stocks.
Activision Blizzard Company Profile
Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. It develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content. The company also maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games; and develops and publishes interactive entertainment content and services primarily on mobile platforms, such as Android and iOS, as well as distributes its content and services on the PC platform primarily through Facebook. In addition, it engages in creating original film and television content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. The company's products include various genres, including first-person shooter, action/adventure, role-playing, strategy, and others. It serves retailers and distributors, including mass-market retailers, first party digital storefronts, consumer electronics stores, discount warehouses, and game specialty stores through third-party distribution and licensing arrangements in the United States, Australia, Brazil, Canada, China, France, Germany, Ireland, Italy, Japan, Malta, Mexico, the Netherlands, Romania, Singapore, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. The company was incorporated in 1979 and is headquartered in Santa Monica, California.
Shotspotter Company Profile
ShotSpotter, Inc. provides precision-policing and security solutions for law enforcement and security personnel in the United States and South Africa. Its solutions include ShotSpotter Flex, a public safety solution, which serves cities and municipalities to identify, locate, and deter gun violence by incorporating a real-time gunshot detection system into their policing systems; and ShotSpotter Missions, a cloud-based patrol management solution to help police departments plan patrol missions and tactics for crime deterrence. The company also provides ShotSpotter SecureCampus that helps the law enforcement and security personnel serving universities, colleges, and other educational institutions to mitigate risk and enhance security by notifying authorities and first responders of an active-shooter. In addition, it offers ShotSpotter SiteSecure, which serves customers, such as corporations to safeguard their facilities; and public agencies focused on protecting critical infrastructure, including train stations, airports, and freeways. The company sells its solutions through its direct sales teams. ShotSpotter, Inc. was founded in 1996 and is headquartered in Newark, California.
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