Financial Analysis: Ebix (NASDAQ:EBIX) vs. MicroStrategy (MSTR)
MicroStrategy (NASDAQ: MSTR) and Ebix (NASDAQ:EBIX) 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, profitabiliy, institutional ownership, earnings, dividends, risk and analyst recommendations.
This table compares MicroStrategy and Ebix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
78.6% of MicroStrategy shares are owned by institutional investors. Comparatively, 64.1% of Ebix shares are owned by institutional investors. 21.8% of MicroStrategy shares are owned by insiders. Comparatively, 13.0% of Ebix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares MicroStrategy and Ebix’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MicroStrategy||$513.72 million||4.14||$115.16 million||$7.92||23.46|
|Ebix||$306.33 million||5.81||$111.26 million||$3.03||18.61|
MicroStrategy has higher revenue and earnings than Ebix. Ebix is trading at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for MicroStrategy and Ebix, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MicroStrategy presently has a consensus target price of $214.50, suggesting a potential upside of 15.43%. Given MicroStrategy’s higher probable upside, analysts clearly believe MicroStrategy is more favorable than Ebix.
Ebix pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. MicroStrategy does not pay a dividend. Ebix pays out 9.9% of its earnings in the form of a dividend.
Volatility and Risk
MicroStrategy has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Ebix has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.
MicroStrategy beats Ebix on 8 of the 15 factors compared between the two stocks.
MicroStrategy Company Profile
MicroStrategy Incorporated is a provider of enterprise software platforms around the world. The Company is engaged in the design, development, marketing and sales of its software platform through licensing arrangements, and cloud-based subscriptions and related services. It focuses on providing enterprise customers with software platform and services for deploying intelligence applications. Its platform, MicroStrategy 10, consolidates analytics and mobility in a single platform, available both as on-premise software and as a hosted service offering in MicroStrategy Cloud. Its enterprise platform combines business intelligence functionality with data discovery, mobile analytics and identity intelligence generated by digital credentials. MicroStrategy 10 consists of MicroStrategy Analytics, MicroStrategy Mobile and Usher. MicroStrategy Analytics offers solutions to organizations to analyze a range of data and distribute actionable business insight throughout an enterprise.
Ebix Company Profile
Ebix, Inc. (Ebix) is a supplier of software and e-commerce solutions to the insurance industry. Ebix provides application software products for the insurance industry, including carrier systems, agency systems and exchanges, as well as custom software development. Ebix conducts its operations through four channels, which include Exchanges, Carrier Systems, Broker Systems and Risk Compliance Solutions (RCS). Ebix operates data exchanges in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, and property and casualty (P&C) insurance. Ebix designs and deploys back-end systems for P&C insurance brokers across the world. Ebix also designs and deploys on-demand and back-end systems for P&C insurance companies. Ebix focus in RCS channel pertains to business process outsourcing services that include providing project management, time and material consulting to clients across the world, and claims adjudication/settlement services.
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