Reviewing PTC (NASDAQ:PTC) and Intuit (NASDAQ:INTU)

PTC (NASDAQ:PTC) and Intuit (NASDAQ:INTU) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares PTC and Intuit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PTC	27.05%	23.03%	12.81%
Intuit	21.19%	23.52%	13.10%

Volatility and Risk

PTC has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Intuit has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

95.1% of PTC shares are owned by institutional investors. Comparatively, 83.7% of Intuit shares are owned by institutional investors. 0.3% of PTC shares are owned by insiders. Comparatively, 2.5% of Intuit shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares PTC and Intuit”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PTC	$2.74 billion	7.38	$741.03 million	$6.14	27.70
Intuit	$18.83 billion	9.30	$3.87 billion	$14.63	43.03

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PTC and Intuit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PTC	0	5	12	0	2.71
Intuit	1	4	23	1	2.83

PTC currently has a consensus price target of $205.92, indicating a potential upside of 21.06%. Intuit has a consensus price target of $796.60, indicating a potential upside of 26.55%. Given Intuit’s stronger consensus rating and higher probable upside, analysts clearly believe Intuit is more favorable than PTC.

Summary

Intuit beats PTC on 13 of the 15 factors compared between the two stocks.

About PTC

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

About Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.