SolarWinds (NYSE:SWI) and MAM Software Group (NASDAQ:MAMS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
93.0% of SolarWinds shares are owned by institutional investors. Comparatively, 36.2% of MAM Software Group shares are owned by institutional investors. 1.6% of SolarWinds shares are owned by insiders. Comparatively, 26.1% of MAM Software Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares SolarWinds and MAM Software Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MAM Software Group||10.10%||25.71%||11.91%|
This is a breakdown of current ratings and price targets for SolarWinds and MAM Software Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MAM Software Group||0||1||0||0||2.00|
SolarWinds currently has a consensus target price of $19.39, indicating a potential upside of 13.08%. MAM Software Group has a consensus target price of $9.00, indicating a potential downside of 14.45%. Given SolarWinds’ stronger consensus rating and higher probable upside, research analysts plainly believe SolarWinds is more favorable than MAM Software Group.
Earnings & Valuation
This table compares SolarWinds and MAM Software Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SolarWinds||$833.09 million||6.38||-$102.07 million||$0.57||30.09|
|MAM Software Group||$35.78 million||3.71||$3.21 million||$0.33||31.88|
MAM Software Group has lower revenue, but higher earnings than SolarWinds. SolarWinds is trading at a lower price-to-earnings ratio than MAM Software Group, indicating that it is currently the more affordable of the two stocks.
SolarWinds beats MAM Software Group on 8 of the 13 factors compared between the two stocks.
SolarWinds Corporation provides information technology (IT) infrastructure management software products in the United States and internationally. It offers products to monitor and manage network, system, desktop, application, storage, and database and Website infrastructures, whether on-premise, in the public or private cloud, or in a hybrid IT infrastructure. The company provides a suite of network management software that provides real-time visibility into network utilization and bandwidth, as well as the ability to detect, diagnose, and resolve network performance problems; and a suite of system management products, which monitor and analyze the performance of applications and their supporting infrastructure. It also offers cloud-based monitoring of the full IT stack whether deployed in the cloud or on-premise; and AppOptics, which integrates application performance, server infrastructure monitoring, and custom metrics into one unified cloud-based solution. Its cloud management products enable visibility into log data, cloud infrastructure metrics, applications, tracing, and Web performance management. In addition, the company provides IT service management solutions to enable managed service providers (MSPs) to deliver outsourced IT services and manage their own businesses. Its remote monitoring and management software, which monitors desktops, laptops, servers, and mobile devices across operating systems and platforms. Further, it offers an email protection and archiving platform on a standalone basis that protects businesses from phishing, malware, and other email-borne threats. The company markets and sells its products directly to network and systems engineers, database administrators, storage administrators, DevOps professionals, and managed service providers. The company was formerly known as SolarWinds Parent, Inc. and changed its name to SolarWinds Corporation in May 2018. SolarWinds Corporation was founded in 1999 and is headquartered in Austin, Texas.
About MAM Software Group
MAM Software Group, Inc., through its subsidiaries, provides software, information, and e-commerce and related services to businesses engaged in the automotive aftermarket in the United States, Canada, the United Kingdom, and Ireland. The company offers business management systems, including its proprietary software applications, implementation and training, and third-party hardware and peripherals; and information products, such as an accessible catalog database related to parts, tires, labor estimates, scheduled maintenance, repair information, technical service bulletins, pricing, and product features and benefits. It also provides e-commerce and online services that offers Web sites and online connectivity between manufacturers, warehouse distributors, retailers, auto service providers, and the consumer; and customer support, consulting, and training services comprising phone and online support, implementation, and training. The company's business management systems include Autopart for warehouse distributors that seek to manage various locations and inventories on a single system, as well as parts store chains that seek to manage various locations and inventories on a single system for a regional area; and VAST, a product for large-to medium-sized automotive service and tire chains. Its business management systems also comprise Autowork Online for small single location auto service businesses; and Trader, a product for generic wholesalers and distributors. In addition, the company offers information products, such as Autocat, MAM Commerce, Interchange Catalog, Labor Guide, Scheduled Service Intervals, and Tire Sizing. Further, it provides online e-commerce services through OpenWebs, Autonet, and WebTrade and WebRetail solutions. The company serves wholesale parts and tire distributors, retailers, franchisees, cooperatives, auto service chains, and single location auto service businesses. MAM Software Group, Inc. is headquartered in Blue Bell, Pennsylvania.
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