Critical Analysis: 2U (NASDAQ:TWOU) vs. Elastic (NASDAQ:ESTC)
2U (NASDAQ:TWOU) and Elastic (NYSE:ESTC) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
This is a summary of recent ratings and target prices for 2U and Elastic, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional & Insider Ownership
40.6% of Elastic shares are owned by institutional investors. 4.9% of 2U shares are owned by company insiders. Comparatively, 51.8% of Elastic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares 2U and Elastic’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|2U||$411.77 million||5.56||-$38.33 million||($0.63)||-62.13|
|Elastic||$271.65 million||27.41||-$102.30 million||($1.80)||-54.89|
2U has higher revenue and earnings than Elastic. 2U is trading at a lower price-to-earnings ratio than Elastic, indicating that it is currently the more affordable of the two stocks.
This table compares 2U and Elastic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Elastic beats 2U on 7 of the 13 factors compared between the two stocks.
2U Company Profile
2U, Inc. operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates through two segments, Graduate Program Segment and Short Course Segment. It offers front-end technology and services, including online learning platform, student and faculty and immersion support, accessibility, admissions application advising, in-program student field placements, and faculty recruiting. The company provides back-end technology and services comprising graduate program launch and operations applications, university systems integration applications, content management system, admission application processing portal, customer relationship management, content development, student acquisition, and state authorization services. The company was formerly known as 2Tor Inc. and changed its name to 2U, Inc. in October 2012. 2U, Inc. was founded in 2008 and is headquartered in Lanham, Maryland.
Elastic Company Profile
Elastic N.V. develops and delivers technology that enables users to search structured and unstructured data for a range of consumer and enterprise applications. It primarily provides Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization. Its Elastic Stack comprises products, such as Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems. The company also offers software solutions on the Elastic Stack that address cases, including app search, site search, enterprise search, logging, metrics, application performance monitoring, business analytics, and security analytics. Its products are used by individual developers and organizations of a range of industries. The company was founded in 2012 and is headquartered in Mountain View, California.
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