Both CounterPath Corporation (NASDAQ:CPAH) and Red Hat Inc. (NYSE:RHT) compete on a level playing field in the Application Software industry. We will evaluate their performance with regards to analyst recommendations, profitability, risk, dividends, earnings and valuation, institutional ownership.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CounterPath Corporation 10.69M 0.87 5.58M -0.94 0.00
Red Hat Inc. 3.48B 9.57 461.92M 2.39 77.46

Table 1 shows the top-line revenue, earnings per share and valuation for CounterPath Corporation and Red Hat Inc.

Profitability

Table 2 hightlights the net margins, return on equity and return on assets of the two companies.

Net Margins Return on Equity Return on Assets
CounterPath Corporation -52.20% -88.1% -45.6%
Red Hat Inc. 13.27% 30.1% 8.4%

Volatility and Risk

A 1.24 beta indicates that CounterPath Corporation is 24.00% more volatile compared to Standard and Poor’s 500. Red Hat Inc. has a 0.51 beta and it is 49.00% less volatile than Standard and Poor’s 500.

Liquidity

0.8 and 0.8 are the respective Current Ratio and a Quick Ratio of CounterPath Corporation. Its rival Red Hat Inc.’s Current and Quick Ratios are 1.3 and 1.3 respectively. Red Hat Inc. has a better chance of clearing its pay short and long-term debts than CounterPath Corporation.

Analyst Ratings

CounterPath Corporation and Red Hat Inc. Recommendations and Ratings are available in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
CounterPath Corporation 0 0 0 0.00
Red Hat Inc. 0 0 1 3.00

Meanwhile, Red Hat Inc.’s average target price is $190, while its potential upside is 1.31%.

Institutional and Insider Ownership

CounterPath Corporation and Red Hat Inc. has shares held by institutional investors as follows: 6.2% and 92.1%. 0.9% are CounterPath Corporation’s share held by insiders. Competitively, Red Hat Inc. has 0.4% of it’s share held by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
CounterPath Corporation -20.87% -21.74% -10.56% -29.41% -40.98% 20.17%
Red Hat Inc. 0.53% 1.63% 2.94% 6.64% 12.46% 5.49%

For the past year CounterPath Corporation was more bullish than Red Hat Inc.

Summary

Red Hat Inc. beats CounterPath Corporation on 11 of the 12 factors.

CounterPath Corporation designs, develops, markets, and sells software applications and related services in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The companyÂ’s software applications and related services enable enterprises and telecommunication service providers to deliver voice, video, and messaging and collaboration functionality over their Internet protocol and based networks. Its products include Bria softphone suite, which enables consumers and business users to make voice over Internet protocol (VoIP) audio and video calls, send instant messages, manage their presence, share their screen, and collaborate with other users using desktop computers and laptops, smartphones, and tablets; and X-Lite, a standards-based VoIP softphone application that runs on desktop computers. The company also offers software development kits that deliver voice, video, and messaging capabilities for desktop, tablet, and mobile devices; Stretto Platform, a carrier-grade software platform for enterprises and service providers to deploy, configure, upgrade, and manage their Bria softphones; and Bria X, a subscription service, which delivers centralized provisioning, messaging, and screen sharing from the cloud, as well as cloud solutions. In addition, it provides professional and other services, such as pre and post sales, technical support, and customization services, as well as support and maintenance services. The company sells its products and services through its own and third-party online stores; and directly using its in-house sales team, as well as through its channel partners. It serves small, medium, and large sized businesses; telecommunications service providers and Internet telephony service providers; original equipment manufacturers, value added distributors, and value added resellers serving the telecommunication market; and end users. CounterPath Corporation was founded in 2002 and is headquartered in Vancouver, Canada.

Red Hat, Inc. provides open source software solutions to develop and offer operating system, virtualization, management, middleware, cloud, mobile, and storage technologies to various enterprises worldwide. It offers infrastructure-related solutions, such as Red Hat Enterprise Linux, an operating system platform that runs on hardware for use in hybrid cloud environments; Red Hat Satellite, a system management offering that helps to deploy, scale, and manage in hybrid cloud environments; and Red Hat Enterprise Virtualization, a software solution that allows customers to utilize and manage a common hardware infrastructure to run multiple operating systems and applications. The company offers application development-related and other technology solutions, such as Red Hat JBoss Middleware, a solution for developing, deploying, and managing applications; integrating applications, data, and devices; and automating business processes in hybrid cloud environments; Red Hat cloud offerings, a software solution that enables customers to build and manage various cloud computing environments; Red Hat Mobile, a software development platform that enables customers to develop, integrate, deploy, and manage mobile applications for enterprises; and Red Hat Storage, a software solution that enables customers to manage large, unstructured, or semi-structured data in hybrid cloud environments. It also provides consulting, support, and training services; and real-time operating system, distributed computing, directory services, and user authentication. Red Hat, Inc. has a collaboration with Wipro Limited to set up a cloud application factory that offers developers and IT teams a methodology for application modernization across public, private, and hybrid clouds. The company was formerly known as Red Hat Software, Inc. and changed its name to Red Hat, Inc. in June 1999. Red Hat, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina.

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