Reviewing Dassault Systemes (OTCMKTS:DASTY) and Trend Micro (OTCMKTS:TMICY)

Dassault Systemes (OTCMKTS:DASTY) and Trend Micro (OTCMKTS:TMICY) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Volatility & Risk

Dassault Systemes has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Dassault Systemes shares are held by institutional investors. Comparatively, 0.1% of Trend Micro shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Dassault Systemes and Trend Micro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dassault Systemes	0	3	1	1	2.60
Trend Micro	0	0	0	0	0.00

Valuation & Earnings

This table compares Dassault Systemes and Trend Micro”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dassault Systemes	$7.05 billion	4.28	$1.35 billion	$1.06	21.25
Trend Micro	$1.85 billion	2.40	$231.30 million	$1.75	19.41

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

Dividends

Dassault Systemes pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Trend Micro pays an annual dividend of $1.79 per share and has a dividend yield of 5.3%. Dassault Systemes pays out 20.8% of its earnings in the form of a dividend. Trend Micro pays out 102.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Dassault Systemes and Trend Micro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dassault Systemes	19.93%	18.81%	10.91%
Trend Micro	12.51%	28.76%	8.83%

Summary

Dassault Systemes beats Trend Micro on 11 of the 15 factors compared between the two stocks.

About Dassault Systemes

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.

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.