Reviewing Strategy (NASDAQ:MSTR) & SpringBig (NASDAQ:SBIG)

SpringBig (NASDAQ:SBIG) and Strategy (NASDAQ:MSTR) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SpringBig and Strategy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SpringBig	0	0	0	0	0.00
Strategy	2	2	13	1	2.72

Strategy has a consensus target price of $239.81, suggesting a potential upside of 101.10%. Given Strategy’s stronger consensus rating and higher probable upside, analysts plainly believe Strategy is more favorable than SpringBig.

Profitability

This table compares SpringBig and Strategy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SpringBig	-15.10%	N/A	-63.22%
Strategy	-6,102.95%	-74.18%	-50.25%

Valuation and Earnings

This table compares SpringBig and Strategy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SpringBig	$28.37 million	0.01	-$10.23 million	($0.09)	-0.09
Strategy	$477.23 million	96.01	-$3.85 billion	($97.21)	-1.23

SpringBig has higher earnings, but lower revenue than Strategy. Strategy is trading at a lower price-to-earnings ratio than SpringBig, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

30.9% of SpringBig shares are held by institutional investors. Comparatively, 59.8% of Strategy shares are held by institutional investors. 41.0% of SpringBig shares are held by insiders. Comparatively, 6.5% of Strategy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

SpringBig has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500. Comparatively, Strategy has a beta of 3.54, meaning that its share price is 254% more volatile than the S&P 500.

Summary

Strategy beats SpringBig on 9 of the 15 factors compared between the two stocks.

About SpringBig

SpringBig Holdings, Inc. develops and operates a software platform that provides marketing and customer engagement services to cannabis dispensaries and brands in the United States and Canada. Its platform offers customer loyalty and marketing automation solutions. The company was founded in 2016 and is headquartered in Boca Raton, Florida.

About Strategy

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions. The company also delivers Strategy Support, helping customers achieve system availability and usage goals through responsive troubleshooting; Strategy Consulting, offering architecture and implementation services; and Strategy Education, which includes free and paid learning options. In addition, the company is actively involved in Bitcoin development. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.