RealNetworks (NASDAQ: RNWK) and Kayak Software Corp (NASDAQ:KYAK) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Valuation and Earnings

This table compares RealNetworks and Kayak Software Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RealNetworks $126.19 million 1.43 -$17.23 million ($0.69) -7.04
Kayak Software Corp N/A N/A N/A N/A N/A

Kayak Software Corp has higher revenue, but lower earnings than RealNetworks.

Profitability

This table compares RealNetworks and Kayak Software Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RealNetworks -20.48% -36.41% -24.73%
Kayak Software Corp 2.58% 2.19% 1.98%

Analyst Recommendations

This is a summary of current ratings and recommmendations for RealNetworks and Kayak Software Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealNetworks 0 0 1 0 3.00
Kayak Software Corp 0 0 0 0 N/A

RealNetworks currently has a consensus target price of $6.50, suggesting a potential upside of 33.74%. Given RealNetworks’ higher possible upside, equities analysts clearly believe RealNetworks is more favorable than Kayak Software Corp.

Institutional and Insider Ownership

51.7% of RealNetworks shares are held by institutional investors. 37.9% of RealNetworks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

RealNetworks beats Kayak Software Corp on 5 of the 8 factors compared between the two stocks.

RealNetworks Company Profile

RealNetworks, Inc. creates applications and services that enable to connect with digital media. The Company connects consumers with their digital media directly and through partners, focusing on supporting various network, devices, media types and social networks. It operates through three segments: Consumer Media, Mobile Services and Games. Within its Consumer Media business, its RealPlayer media player software includes features and services that enable consumers to discover, play, download, manage and edit digital video, stream audio and video, download and save photos and videos from the Web, transfer and share content on social networks, and edit their own photo and video content. The Mobile Services segment consists of digital media services it provides to mobile and online service providers as software as a service offerings. It develops, publishes, licenses and distributes casual games.

Kayak Software Corp Company Profile

Centralizing online travel deals is smooth sailing for Kayak Software. Through its websites (KAYAK.com, swoodoo.com, and SideStep.com) in about 15 countries, the company displays rates on airfare, hotels, rental cars, and cruises from more than 500 other travel websites. Kayak Software offers fare information from Continental Airlines and American Airlines, as well as prices from Funjet Vacations, Marriott International, and InterContinental Hotel Group, among others. In addition to booking, the firm’s websites and mobile applications provide destination information, travel tips, member discounts, and hotel descriptions. Founded in 2004, Kayak Software filed to go public in late 2010.

Receive News & Stock Ratings for RealNetworks Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RealNetworks Inc. and related stocks with our FREE daily email newsletter.