Fair Isaac (NYSE: FICO) and Xactly (NYSE:XTLY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Profitability

This table compares Fair Isaac and Xactly’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fair Isaac 13.76% 30.03% 10.29%
Xactly -17.64% -354.88% -19.78%

Insider and Institutional Ownership

90.0% of Fair Isaac shares are held by institutional investors. 5.6% of Fair Isaac shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Fair Isaac and Xactly’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fair Isaac $932.17 million 5.04 $128.25 million $3.97 39.47
Xactly N/A N/A N/A ($0.54) -28.98

Fair Isaac has higher revenue and earnings than Xactly. Xactly is trading at a lower price-to-earnings ratio than Fair Isaac, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Fair Isaac and Xactly, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fair Isaac 0 1 1 0 2.50
Xactly 0 6 1 0 2.14

Fair Isaac presently has a consensus target price of $150.00, suggesting a potential downside of 4.26%. Xactly has a consensus target price of $17.28, suggesting a potential upside of 10.41%. Given Xactly’s higher probable upside, analysts clearly believe Xactly is more favorable than Fair Isaac.

Dividends

Fair Isaac pays an annual dividend of $0.02 per share and has a dividend yield of 0.0%. Xactly does not pay a dividend. Fair Isaac pays out 0.5% of its earnings in the form of a dividend.

Summary

Fair Isaac beats Xactly on 9 of the 11 factors compared between the two stocks.

Fair Isaac Company Profile

Fair Isaac Corporation (FICO) is a provider of analytic, software and data management products and services that enable businesses to automate and connect decisions. The Company operates through three segments: Applications, Scores and Decision Management Software. The Applications segment includes pre-configured decision management applications designed for a specific type of business problem or process, such as marketing, account origination, customer management, fraud, collections and insurance claims management. The Scores segment includes business-to-business scoring solutions and services, business-to-consumer scoring solutions and services, including myFICO solutions for consumers. The Decision Management Software segment consists of analytic and decision management software tools that clients can use to create their own custom decision management applications, its new FICO Decision Management Suite, as well as associated professional services.

Xactly Company Profile

Xactly Corporation is a provider of cloud-based incentive compensation solutions for employee and sales performance management. The Company delivers its solutions through a software-as-a-service (SaaS) business model. The Company has a customer base, including companies in various industries, such as business and financial services, communications, life sciences, media and Internet, SaaS and traditional software, and retail. Its SaaS solutions are delivered through a cloud-based platform. Its solutions support finance, sales, compensation administrators, information technology and human resources personnel in designing, processing and managing incentive compensation. The Company offers products, including Xactly Incent Enterprise, Xactly Incent Express, Xactly Objectives, Xactly Territories, Xactly Insights, Xactly Quota, Xactly Incent Views, Xactly Inspire and Xactly Connect.

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