Contrasting Taboola.com (NASDAQ:TBLA) and Fair Isaac (NYSE:FICO)

Fair Isaac (NYSE:FICO) and Taboola.com (NASDAQ:TBLA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

85.8% of Fair Isaac shares are owned by institutional investors. Comparatively, 42.9% of Taboola.com shares are owned by institutional investors. 3.0% of Fair Isaac shares are owned by company insiders. Comparatively, 24.7% of Taboola.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Fair Isaac has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Fair Isaac and Taboola.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fair Isaac	0	5	10	0	2.67
Taboola.com	0	4	4	0	2.50

Fair Isaac presently has a consensus price target of $2,071.43, indicating a potential upside of 48.81%. Taboola.com has a consensus price target of $4.75, indicating a potential upside of 32.31%. Given Fair Isaac’s stronger consensus rating and higher possible upside, research analysts plainly believe Fair Isaac is more favorable than Taboola.com.

Valuation and Earnings

This table compares Fair Isaac and Taboola.com”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fair Isaac	$1.99 billion	16.59	$651.95 million	$27.02	51.52
Taboola.com	$1.77 billion	0.59	-$3.76 million	$0.08	44.88

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

Profitability

This table compares Fair Isaac and Taboola.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fair Isaac	31.89%	-40.98%	33.55%
Taboola.com	1.34%	8.12%	4.92%

Summary

Fair Isaac beats Taboola.com on 11 of the 14 factors compared between the two stocks.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.

About Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.