Reviewing ANSYS (ANSS) & Autodesk (ADSK)

ANSYS (NASDAQ: ANSS) and Autodesk (NASDAQ:ADSK) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Profitability

This table compares ANSYS and Autodesk’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANSYS 26.37% 13.87% 11.06%
Autodesk -26.99% -36.65% -6.97%

Institutional and Insider Ownership

98.3% of ANSYS shares are owned by institutional investors. Comparatively, 97.7% of Autodesk shares are owned by institutional investors. 1.3% of ANSYS shares are owned by insiders. Comparatively, 6.1% of Autodesk shares are owned by 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.

Volatility and Risk

ANSYS has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Autodesk has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ANSYS and Autodesk, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANSYS 2 9 1 0 1.92
Autodesk 1 4 17 0 2.73

ANSYS currently has a consensus target price of $105.75, indicating a potential downside of 18.02%. Autodesk has a consensus target price of $108.22, indicating a potential downside of 2.51%. Given Autodesk’s stronger consensus rating and higher probable upside, analysts clearly believe Autodesk is more favorable than ANSYS.

Earnings and Valuation

This table compares ANSYS and Autodesk’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ANSYS $1.03 billion 10.62 $461.25 million $3.11 41.48
Autodesk $2.00 billion 12.23 -$294.20 million ($2.44) -45.50

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

Summary

Autodesk beats ANSYS on 7 of the 13 factors compared between the two stocks.

About ANSYS

ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.

About Autodesk

Autodesk, Inc. is a design software and services company, offering customers productive business solutions through technology products and services. The Company’s segments include Architecture, Engineering and Construction (AEC), Platform Solutions and Emerging Business (PSEB), Manufacturing (MFG), and Media and Entertainment (M&E). The Company serves customers in the architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries. The Company’s product development and manufacturing software provides manufacturers in automotive, transportation, industrial machinery, consumer products and building products with digital engineering solutions. The Company’s product offerings include, AutoCAD, AutoCAD LT, Industry Collections, 3ds Max, Maya, Revit, Inventor, AutoCAD Civil three dimensional (3D), CAM Solutions, Fusion 360, BIM 360 and Shotgun.

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