Reviewing MicroStrategy (MSTR) and HubSpot (HUBS)
MicroStrategy (NASDAQ: MSTR) and HubSpot (NYSE:HUBS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.
Insider and Institutional Ownership
75.9% of MicroStrategy shares are held by institutional investors. Comparatively, 96.0% of HubSpot shares are held by institutional investors. 21.8% of MicroStrategy shares are held by company insiders. Comparatively, 12.1% of HubSpot shares are held by company 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.
Risk and Volatility
MicroStrategy has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, HubSpot has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500.
This table compares MicroStrategy and HubSpot’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for MicroStrategy and HubSpot, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MicroStrategy presently has a consensus target price of $155.75, indicating a potential upside of 10.49%. HubSpot has a consensus target price of $79.24, indicating a potential downside of 5.50%. Given MicroStrategy’s higher probable upside, equities analysts plainly believe MicroStrategy is more favorable than HubSpot.
Valuation & Earnings
This table compares MicroStrategy and HubSpot’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MicroStrategy||$511.19 million||3.16||$109.23 million||$7.24||19.47|
|HubSpot||$318.38 million||9.75||-$34.68 million||($1.17)||-71.67|
MicroStrategy has higher revenue and earnings than HubSpot. HubSpot is trading at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.
MicroStrategy beats HubSpot on 8 of the 13 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.
HubSpot Company Profile
HubSpot, Inc. (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting. The Company’s products include HubSpot Marketing, HubSpot CRM and HubSpot Sales. The Company offers Professional Services and support. It offers professional services to educate and train customers on how to leverage its software platform and inbound marketing methodology to transform how their business attracts, engages and delights customers.
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