Reviewing HubSpot (NYSE:HUBS) & MIND C.T.I. (NASDAQ:MNDO)

MIND C.T.I. (NASDAQ:MNDO) and HubSpot (NYSE:HUBS) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for MIND C.T.I. and HubSpot, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MIND C.T.I.	1	0	0	0	1.00
HubSpot	2	17	15	0	2.38

HubSpot has a consensus price target of $270.61, suggesting a potential upside of 18.34%. Given HubSpot’s stronger consensus rating and higher possible upside, analysts clearly believe HubSpot is more favorable than MIND C.T.I..

Institutional and Insider Ownership

24.3% of MIND C.T.I. shares are held by institutional investors. Comparatively, 90.4% of HubSpot shares are held by institutional investors. 3.7% of HubSpot shares 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.

Risk and Volatility

MIND C.T.I. has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, HubSpot has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares MIND C.T.I. and HubSpot”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MIND C.T.I.	$19.46 million	1.04	$2.60 million	$0.16	6.25
HubSpot	$3.13 billion	3.64	$45.91 million	$2.83	80.80

HubSpot has higher revenue and earnings than MIND C.T.I.. MIND C.T.I. is trading at a lower price-to-earnings ratio than HubSpot, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MIND C.T.I. and HubSpot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MIND C.T.I.	16.87%	14.09%	10.90%
HubSpot	4.26%	8.66%	4.47%

Summary

HubSpot beats MIND C.T.I. on 11 of the 14 factors compared between the two stocks.

About MIND C.T.I.

MIND C.T.I. Ltd., together with its subsidiaries, develops, markets, sells, and implements billing and customer care software solutions for communication service providers in the Americas, Europe, Israel, the Asia Pacific, and Africa. It operates in two segments, Billing and Related Services, and Messaging. The company offers billing and customer care solutions that support various services, such as voice, data, and content services, as well as prepaid, postpaid, and pay-in-advance payment models in a single platform. Its solutions also include a workflow engine to support the implementation of business processes, including subscriber registration, order management, trouble ticket, and debt collection; and a point of sale solution that covers dealer, store and cashier management, and sales cycle related activities. In addition, the company offers professional services comprising turnkey project delivery, customer support and maintenance, integration, customizations, and project management; and managed services, including day to day billing operational tasks. Further, it provides PhonEX ONE, a call management system that collects, records, and stores call information, which is used by organizations for telecom expense management, call accounting, traffic analysis, and fraud detection; and a mobile messaging platform. The company offers its products directly, as well as through distributors and resellers primarily to communication service providers, such as traditional wireline and wireless, voice over IP, broadband IP network operators, wireless internet service providers, LTE operators, cable operators, and mobile virtual network operators. MIND C.T.I. Ltd. was incorporated in 1995 and is headquartered in Yokneam Illit, Israel.

About HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.