Changyou.Com (NASDAQ:CYOU) and Appian (NASDAQ:APPN) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices for Changyou.Com and Appian, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Changyou.Com 1 2 0 0 1.67
Appian 2 5 0 0 1.71

Changyou.Com currently has a consensus target price of $33.43, suggesting a potential upside of 67.50%. Appian has a consensus target price of $29.17, suggesting a potential downside of 23.89%. Given Changyou.Com’s higher possible upside, equities analysts clearly believe Changyou.Com is more favorable than Appian.

Earnings & Valuation

This table compares Changyou.Com and Appian’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Changyou.Com $485.76 million 2.17 $84.33 million $1.57 12.71
Appian $176.74 million 13.80 -$31.00 million ($0.61) -62.82

Changyou.Com has higher revenue and earnings than Appian. Appian is trading at a lower price-to-earnings ratio than Changyou.Com, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Changyou.Com and Appian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Changyou.Com 17.36% 8.86% 4.70%
Appian -19.54% -85.70% -25.56%

Volatility and Risk

Changyou.Com has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Appian has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Institutional & Insider Ownership

26.9% of Changyou.Com shares are held by institutional investors. Comparatively, 23.7% of Appian shares are held by institutional investors. 64.0% of Appian shares are held 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.

Summary

Changyou.Com beats Appian on 9 of the 13 factors compared between the two stocks.

About Changyou.Com

Changyou.com Limited develops and operates online games in the People's Republic of China. The company operates through Online Game, Platform Channel, and Others segments. It develops, operates, and licenses online games, including interactive online games that are accessed and played simultaneously by various game players through personal computers; and mobile games played on mobile devices. The company also operates 17173.com Website, an information portal that provides news, electronic forums, online videos, and other information services on online games to game players; and offers various software applications for PCs and mobile devices, as well as purchases pre-film cinema advertising slots from movie theater operators for advertisers. As of December 31, 2017, it had approximately 5.5 million total average monthly active accounts; and 2.0 million total active paying accounts. The company was founded in 2003 and is headquartered in Beijing, the People's Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.

About Appian

Appian Corporation provides low-code software development platform that enables organizations to develop various applications in the United States and internationally. The company's platform automates the creation of forms, data flows, records, reports, and other software elements that are needed to be manually coded or configured. Its principal software markets include the markets for low-code development platforms, case management software, business process management, and platform-as-a-service. The company also offers professional and customer support services. Its customers include financial services, healthcare, government, telecommunications, media, energy, manufacturing, and transportation organizations. Appian Corporation was founded in 1999 and is headquartered in Reston, Virginia.

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