A10 Networks (ATEN) and MicroStrategy (MSTR) Head to Head Comparison

A10 Networks (NYSE: ATEN) and MicroStrategy (NASDAQ:MSTR) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Valuation & Earnings

This table compares A10 Networks and MicroStrategy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
A10 Networks $230.00 million 2.02 -$20.94 million ($0.25) -26.32
MicroStrategy $512.16 million 3.15 $90.90 million $6.49 21.72

MicroStrategy has higher revenue and earnings than A10 Networks. A10 Networks is trading at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

58.1% of A10 Networks shares are owned by institutional investors. Comparatively, 73.8% of MicroStrategy shares are owned by institutional investors. 31.6% of A10 Networks shares are owned by insiders. Comparatively, 21.8% of MicroStrategy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for A10 Networks and MicroStrategy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A10 Networks 0 0 3 0 3.00
MicroStrategy 0 4 1 0 2.20

A10 Networks currently has a consensus target price of $9.00, indicating a potential upside of 36.78%. MicroStrategy has a consensus target price of $155.75, indicating a potential upside of 10.48%. Given A10 Networks’ stronger consensus rating and higher possible upside, equities analysts plainly believe A10 Networks is more favorable than MicroStrategy.

Risk and Volatility

A10 Networks has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, MicroStrategy has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Profitability

This table compares A10 Networks and MicroStrategy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A10 Networks -6.94% -17.63% -7.12%
MicroStrategy 14.81% 12.90% 9.48%

Summary

MicroStrategy beats A10 Networks on 9 of the 14 factors compared between the two stocks.

A10 Networks Company Profile

A10 Networks, Inc. is a provider of software and hardware solutions. The Company’s solutions enable its customers to secure and optimize the performance of their data center and cloud applications, and secure their users, applications and infrastructure from Internet, Web and network threats at scale. The Company offers a portfolio of hardware, software and cloud offerings. Its customers include cloud providers, Web-scale companies, service providers, government organizations and enterprises. The Company’s portfolio consists of six application delivery and security products, including Application Delivery Controllers (ADC), Lightning Application Delivery Service (Lightning ADS), Carrier Grade Network Address Translation (CGN), Threat Protection System (TPS), SSL Insight (SSLi) and Convergent Firewall (CFW). The Company’s products are available in a range of form factors, such as optimized hardware appliances, bare metal software, virtual appliances and cloud-native software.

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.

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