Comparing SS&C Technologies (NASDAQ:SSNC) & Trend Micro (OTCMKTS:TMICY)

SS&C Technologies (NASDAQ:SSNC) and Trend Micro (OTCMKTS:TMICY) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Valuation & Earnings

This table compares SS&C Technologies and Trend Micro”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SS&C Technologies	$5.88 billion	3.33	$760.50 million	$3.22	24.68
Trend Micro	$1.80 billion	5.78	$226.77 million	$1.62	45.68

SS&C Technologies has higher revenue and earnings than Trend Micro. SS&C Technologies is trading at a lower price-to-earnings ratio than Trend Micro, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.0% of SS&C Technologies shares are owned by institutional investors. Comparatively, 0.0% of Trend Micro shares are owned by institutional investors. 16.4% of SS&C Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for SS&C Technologies and Trend Micro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SS&C Technologies	0	1	5	1	3.00
Trend Micro	0	0	0	0	0.00

SS&C Technologies presently has a consensus target price of $91.86, suggesting a potential upside of 15.57%. Given SS&C Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe SS&C Technologies is more favorable than Trend Micro.

Profitability

This table compares SS&C Technologies and Trend Micro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SS&C Technologies	13.69%	18.68%	6.71%
Trend Micro	11.85%	29.92%	8.63%

Dividends

SS&C Technologies pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Trend Micro pays an annual dividend of $0.95 per share and has a dividend yield of 1.3%. SS&C Technologies pays out 31.1% of its earnings in the form of a dividend. Trend Micro pays out 58.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SS&C Technologies has increased its dividend for 9 consecutive years.

Volatility and Risk

SS&C Technologies has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Summary

SS&C Technologies beats Trend Micro on 13 of the 18 factors compared between the two stocks.

About SS&C Technologies

SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions to the financial services and healthcare industries. It operates through the following geographical segments: United States, Europe, Middle East and Africa, Asia Pacific and Japan, Canada, and the Americas, excluding the United States and Canada. Its products include advent genesis, antares, asset allocators, AWD, axys, BANC mall, BRIX, DST vision, evare, lightning, and moxy. The company was founded by William Charles Stone in March 1986 and is headquartered in Windsor, CT.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.