MicroStrategy (NASDAQ: MSTR) is one of 101 public companies in the “Enterprise Software” industry, but how does it contrast to its peers? We will compare MicroStrategy to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares MicroStrategy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MicroStrategy 14.81% 12.90% 9.48%
MicroStrategy Competitors -20.90% -214.90% -6.68%

Institutional and Insider Ownership

67.4% of MicroStrategy shares are held by institutional investors. Comparatively, 59.8% of shares of all “Enterprise Software” companies are held by institutional investors. 21.8% of MicroStrategy shares are held by company insiders. Comparatively, 22.9% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for MicroStrategy and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MicroStrategy 0 4 1 0 2.20
MicroStrategy Competitors 368 2198 4133 119 2.59

MicroStrategy currently has a consensus target price of $155.75, indicating a potential upside of 13.31%. As a group, “Enterprise Software” companies have a potential upside of 0.19%. Given MicroStrategy’s higher possible upside, equities analysts clearly believe MicroStrategy is more favorable than its peers.

Risk and Volatility

MicroStrategy has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, MicroStrategy’s peers have a beta of 1.10, suggesting that their average share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares MicroStrategy and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
MicroStrategy $512.16 million $90.90 million 21.18
MicroStrategy Competitors $1.76 billion $288.64 million 3.34

MicroStrategy’s peers have higher revenue and earnings than MicroStrategy. MicroStrategy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

MicroStrategy peers beat MicroStrategy on 7 of the 13 factors compared.

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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