MicroStrategy (NASDAQ: MSTR) and BMC Software (NASDAQ:BMC) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Institutional & Insider Ownership
74.3% of MicroStrategy shares are held by institutional investors. 21.8% of MicroStrategy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares MicroStrategy and BMC Software’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 recommmendations for MicroStrategy and BMC Software, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MicroStrategy currently has a consensus target price of $155.75, indicating a potential upside of 10.48%.
Earnings & Valuation
This table compares MicroStrategy and BMC Software’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MicroStrategy||$512.16 million||3.15||$90.90 million||$6.49||21.72|
MicroStrategy has higher revenue and earnings than BMC Software. BMC Software 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 BMC Software on 8 of the 8 factors compared between the two stocks.
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.
About BMC Software
BMC Software, Inc. is a United States-based company. The Company is specializing in business service management software. It develops, markets and sells software used for multiple functions, including information technology (IT) service management, data center automation, performance management, virtualization lifecycle management and cloud computing management. The Company offers a business service management (BSM) platform. Its IT Initiatives include Application Management, Cloud Management for Enterprise, Cloud Management for Service Providers, Consumerization of IT, Data Center Automation, IT Business Management, IT Service Management (ITSM), IT Infrastructure Library (ITIL) and Self-Service IT. The Company’s functional areas include request and support, such as asset management and change management; monitor and operate, such as cloud operations and mainframe automation; provision and configure; govern and control, and integrate and orchestrate.
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