Analyzing FalconStor Software (OTCMKTS:FALC) and Coursera (NYSE:COUR)

Coursera (NYSE:COURGet Free Report) and FalconStor Software (OTCMKTS:FALCGet Free Report) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Coursera and FalconStor Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coursera 1 3 9 0 2.62
FalconStor Software 0 0 0 0 0.00

Coursera presently has a consensus price target of $10.52, indicating a potential upside of 23.70%. Given Coursera’s stronger consensus rating and higher possible upside, research analysts plainly believe Coursera is more favorable than FalconStor Software.

Volatility & Risk

Coursera has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, FalconStor Software has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500.

Insider and Institutional Ownership

89.6% of Coursera shares are owned by institutional investors. Comparatively, 9.5% of FalconStor Software shares are owned by institutional investors. 15.9% of Coursera shares are owned by company insiders. Comparatively, 52.8% of FalconStor Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Coursera and FalconStor Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coursera -11.44% -10.43% -6.86%
FalconStor Software 13.98% -8.94% 14.06%

Earnings and Valuation

This table compares Coursera and FalconStor Software”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coursera $635.76 million 2.12 -$116.55 million ($0.51) -16.68
FalconStor Software $11.60 million 1.14 $980,000.00 ($0.04) -46.25

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

About Coursera

(Get Free Report)

Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.

About FalconStor Software

(Get Free Report)

FalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. It offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome physical tape libraries for archive related data preservation without being replacing their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. The company also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. It sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. The company was incorporated in 1994 and is headquartered in Austin, Texas.

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