Analyzing BMC Software (BMC) and Datawatch (DWCH)

BMC Software (NASDAQ: BMC) and Datawatch (NASDAQ:DWCH) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

38.4% of Datawatch shares are owned by institutional investors. 9.4% of Datawatch shares are owned 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for BMC Software and Datawatch, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BMC Software 0 0 0 0 N/A
Datawatch 0 1 2 0 2.67

Datawatch has a consensus price target of $14.00, indicating a potential upside of 48.15%.

Earnings & Valuation

This table compares BMC Software and Datawatch’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BMC Software N/A N/A N/A $2.17 N/A
Datawatch $36.26 million 3.22 -$3.99 million ($0.22) -42.95

BMC Software has higher earnings, but lower revenue than Datawatch. Datawatch is trading at a lower price-to-earnings ratio than BMC Software, indicating that it is currently the more affordable of the two stocks.


This table compares BMC Software and Datawatch’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BMC Software N/A N/A N/A
Datawatch -6.89% -3.81% -2.56%

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.

About Datawatch

Datawatch Corporation is engaged in the design, development, marketing, distribution and support of business computer software primarily for the self-service data preparation and visual data discovery markets. The Company also provides services, including implementation and support of its software products, as well as training on their use and administration. The Company’s product family includes Datawatch Monarch, Datawatch Panopticon and Datawatch Report Mining Server (RMS). The Company offers its enterprise products through perpetual licenses and subscription pricing models. The Company also offers educational services for customers and partners implementing and learning about the platform, maintenance and support, and professional services to provide in-depth technical assistance for software implementations. The Company offers an array of live and virtual classroom instruction, including private onsite classes.

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