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Analyzing Snap (NYSE:SNAP) and Alithya Group (NASDAQ:ALYA)

Defense World ·  Sep 16, 2022 02:01

Snap (NYSE:SNAP – Get Rating) and Alithya Group (NASDAQ:ALYA – Get Rating) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Earnings & Valuation

This table compares Snap and Alithya Group's top-line revenue, earnings per share and valuation.

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Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Snap $4.12 billion 4.77 -$487.95 million ($0.52) -22.88
Alithya Group $349.33 million 0.52 -$12.40 million ($0.15) -13.87

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

Profitability

This table compares Snap and Alithya Group's net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets
Snap -18.31% -21.55% -9.47%
Alithya Group -3.83% -9.20% -4.22%

Volatility and Risk

Snap has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Alithya Group has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Insider and Institutional Ownership

51.4% of Snap shares are owned by institutional investors. Comparatively, 21.2% of Alithya Group shares are owned by institutional investors. 7.6% of Alithya Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Snap and Alithya Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snap 3 23 11 0 2.22
Alithya Group 0 2 2 0 2.50

Snap presently has a consensus target price of $19.53, suggesting a potential upside of 64.11%. Alithya Group has a consensus target price of $4.63, suggesting a potential upside of 122.36%. Given Alithya Group's stronger consensus rating and higher possible upside, analysts clearly believe Alithya Group is more favorable than Snap.

Summary

Alithya Group beats Snap on 9 of the 14 factors compared between the two stocks.

About Snap

(Get Rating)

Snap Inc. operates as a camera company in North America, Europe, and internationally. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, story ads, collection ads, dynamic ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

About Alithya Group

(Get Rating)

Alithya Group Inc. provides strategy and digital technology services in Canada, the United States, and Europe. The company's business strategy services include strategic consulting, digital transformation, organizational performance, and enterprise architecture services. It also provides application services, such as digital applications DevOps, legacy systems modernization, control and software engineering, cloud infrastructure, quality assurance, and automated testing; enterprise solutions comprising enterprise resource planning, corporate performance management, customer relationship management, and human capital management; and data and analytics solutions, including business intelligence, data management, artificial intelligence (AI), and machine learning, as well as internet of things. In addition, the company provides AI-FI, an integrated artificial intelligence and fidelity solution; Alithya GoTest, solution allows clients to test the functionality of applications on various platforms; CASSI analytics for online weekly maintenance, outage management, petrochemical turnarounds, and maintenance and reliability; and SIDER, a secure solution that facilitates distribution of medical results to healthcare sectors and to centralized electronic medical records. It serves financial services, energy, manufacturing, telecommunications, transportation and logistics, professional services, healthcare, and government sectors. Alithya Group Inc. was founded in 1992 and is headquartered in Montreal, Canada.

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