MicroStrategy (NASDAQ: MSTR) is one of 101 publicly-traded companies in the “Enterprise Software” industry, but how does it contrast to its rivals? We will compare MicroStrategy to related businesses based on the strength of its risk, dividends, earnings, valuation, institutional ownership, analyst recommendations and profitability.
Insider and Institutional 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for MicroStrategy and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MicroStrategy currently has a consensus target price of $155.75, indicating a potential upside of 13.33%. As a group, “Enterprise Software” companies have a potential downside of 0.28%. Given MicroStrategy’s higher probable upside, research analysts clearly believe MicroStrategy is more favorable than its rivals.
Risk and Volatility
MicroStrategy has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, MicroStrategy’s rivals have a beta of 1.09, meaning that their average stock price is 9% more volatile than the S&P 500.
Earnings & Valuation
This table compares MicroStrategy and its rivals gross revenue, earnings per share 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||-4.02|
MicroStrategy’s rivals have higher revenue and earnings than MicroStrategy. MicroStrategy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares MicroStrategy and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
MicroStrategy rivals beat MicroStrategy on 7 of the 13 factors compared.
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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