Analyzing Fair Isaac Corporation (FICO) & MicroStrategy (MSTR)
Fair Isaac Corporation (NYSE: FICO) and MicroStrategy (NASDAQ:MSTR) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
89.3% of Fair Isaac Corporation shares are held by institutional investors. Comparatively, 76.3% of MicroStrategy shares are held by institutional investors. 5.6% of Fair Isaac Corporation shares are held by company insiders. Comparatively, 21.8% of MicroStrategy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Fair Isaac Corporation and MicroStrategy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fair Isaac Corporation||0||1||1||0||2.50|
Fair Isaac Corporation currently has a consensus price target of $142.50, indicating a potential upside of 8.16%. MicroStrategy has a consensus price target of $170.00, indicating a potential upside of 34.06%. Given MicroStrategy’s higher probable upside, analysts clearly believe MicroStrategy is more favorable than Fair Isaac Corporation.
This table compares Fair Isaac Corporation and MicroStrategy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fair Isaac Corporation||13.15%||27.84%||9.72%|
Fair Isaac Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. MicroStrategy does not pay a dividend. Fair Isaac Corporation pays out 1.1% of its earnings in the form of a dividend.
Volatility and Risk
Fair Isaac Corporation has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, MicroStrategy has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Earnings and Valuation
This table compares Fair Isaac Corporation and MicroStrategy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fair Isaac Corporation||$914.79 million||4.41||$202.17 million||$3.72||35.42|
|MicroStrategy||$511.19 million||2.33||$109.23 million||$7.24||17.52|
Fair Isaac Corporation has higher revenue and earnings than MicroStrategy. MicroStrategy is trading at a lower price-to-earnings ratio than Fair Isaac Corporation, indicating that it is currently the more affordable of the two stocks.
Fair Isaac Corporation beats MicroStrategy on 9 of the 15 factors compared between the two stocks.
About Fair Isaac Corporation
Fair Isaac Corporation (FICO) is a provider of analytic, software and data management products and services that enable businesses to automate and connect decisions. The Company operates through three segments: Applications, Scores and Decision Management Software. The Applications segment includes pre-configured decision management applications designed for a specific type of business problem or process, such as marketing, account origination, customer management, fraud, collections and insurance claims management. The Scores segment includes business-to-business scoring solutions and services, business-to-consumer scoring solutions and services, including myFICO solutions for consumers. The Decision Management Software segment consists of analytic and decision management software tools that clients can use to create their own custom decision management applications, its new FICO Decision Management Suite, as well as associated professional services.
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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