2U (TWOU) and Attunity (ATTU) Critical Review

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2U (NASDAQ:TWOU) and Attunity (NASDAQ:ATTU) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Valuation and Earnings

This table compares 2U and Attunity’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
2U $411.77 million 9.16 -$38.33 million ($0.63) -103.02
Attunity $86.25 million 5.80 $5.99 million $0.32 73.09

Attunity has lower revenue, but higher earnings than 2U. 2U is trading at a lower price-to-earnings ratio than Attunity, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

2U has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Attunity has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.

Institutional and Insider Ownership

51.4% of Attunity shares are held by institutional investors. 5.0% of 2U shares are held by insiders. Comparatively, 50.2% of Attunity shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares 2U and Attunity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
2U -9.31% -5.77% -4.85%
Attunity 6.95% 11.23% 7.49%

Analyst Ratings

This is a summary of recent recommendations and price targets for 2U and Attunity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
2U 0 4 7 0 2.64
Attunity 0 2 1 0 2.33

2U presently has a consensus price target of $87.00, indicating a potential upside of 34.05%. Attunity has a consensus price target of $24.33, indicating a potential upside of 4.03%. Given 2U’s stronger consensus rating and higher possible upside, equities analysts clearly believe 2U is more favorable than Attunity.

Summary

Attunity beats 2U on 9 of the 14 factors compared between the two stocks.

2U Company Profile

2U, Inc. operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates through two segments, Graduate Program Segment and Short Course Segment. It offers front-end technology and services, including online learning platform, student and faculty and immersion support, accessibility, admissions application advising, in-program student field placements, and faculty recruiting. The company provides back-end technology and services comprising graduate program launch and operations applications, university systems integration applications, content management system, admission application processing portal, customer relationship management, content development, student acquisition, and state authorization services. The company was formerly known as 2Tor Inc. and changed its name to 2U, Inc. in October 2012. 2U, Inc. was founded in 2008 and is headquartered in Lanham, Maryland.

Attunity Company Profile

Attunity Ltd., together with its subsidiaries, develops, markets, sells, and supports data integration and Big Data management software solutions worldwide. It offers Attunity Replicate, a data replication software for delivering, sharing, and ensuring the availability of data for meeting business operations, analytics, and business intelligence needs; Attunity Gold Client, a replication software for data management within SAP environments; and Attunity Visibility, a software for data usage analytics in Big Data environments. The company also provides Attunity RepliWeb for EFR, a file system and storage replication solution for wide area network infrastructures, as well as an ARA and Web deployment solution for Windows applications, UNIX and Linux applications, and Web infrastructures; and Attunity CloudBeam, a data transfer software as a service-based platform to move data to, from, and between on-premises and cloud environments. In addition, it offers Attunity Compose, a data warehouse automation software to design, generate, and populate enterprise data warehouses and data marts; and change data capture and data connectivity software solutions, as well as support, training, and professional services. The company sells its products directly through sales force; and indirectly through original equipment manufacturers, distributors, and value-added resellers to financial services, healthcare, insurance, energy, telecommunications, manufacturing, retail, pharmaceuticals, and supply chain industries, as well as to governmental and public institutions. Attunity Ltd. has strategic relationships with Amazon Web Service; Google Inc.; Hortonworks, Inc.; HP Inc.; IBM; Microsoft; Oracle; SAP; and Teradata Corporation. The company was formerly known as ISG International Software Group Ltd. and changed its name to Attunity Ltd. in October 2000. Attunity Ltd. was founded in 1988 and is headquartered in Kfar Saba, Israel.

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