Altair Engineering’s stock (NASDAQ: ALTR) is up by 39% since December 2018. On the other hand, peer Cloudera’s stock (NYSE: CLDR) is up merely 8% during the same period. This, despite the fact that Cloudera’s revenue growth for FY 2020 (ended January 2020) stood at 66%, compared to just 16% for Altair in the same period. We believe Altair Engineering is likely a strong investment right now. Our dashboard Cloudera vs. Altair Engineering: Does The Stock Price Movement Make Sense?, has the underlying numbers.
The primary reason is, Altair’s profit margins (net income as a percentage of sales), are much better at -1.6% versus -42.4% for Cloudera, which we believe explains the difference in the growth in Altair’s stock when compared to Cloudera. The $7.5 million loss for Altair was primarily due to a one-time tax expense of $8.6 million pertaining to U.S. effect of foreign operations.
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