SendGrid (NYSE: SEND) and MicroStrategy (NASDAQ:MSTR) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
74.3% of MicroStrategy shares are owned by institutional investors. 21.8% of MicroStrategy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares SendGrid and MicroStrategy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for SendGrid and MicroStrategy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SendGrid currently has a consensus target price of $25.33, indicating a potential upside of 17.88%. MicroStrategy has a consensus target price of $155.75, indicating a potential upside of 18.54%. Given MicroStrategy’s higher possible upside, analysts plainly believe MicroStrategy is more favorable than SendGrid.
Earnings and Valuation
This table compares SendGrid and MicroStrategy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MicroStrategy||$512.16 million||2.94||$90.90 million||$3.25||40.43|
MicroStrategy has higher revenue and earnings than SendGrid. SendGrid is trading at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.
MicroStrategy beats SendGrid on 9 of the 11 factors compared between the two stocks.
SendGrid, Inc. provides a digital communication platform. The Company’s platform enables businesses to engage with their customers through email. It offers three services: Email application programming interface (API), marketing campaigns and Expert services. Its email API service allows developers to use its API in their preferred development framework to leverage its platform to add email functionality to their applications. Its marketing campaigns service allows marketers to upload and manage customer contact lists, create and test email templates, and then execute and analyze multi-faceted email campaigns. Its Expert services help businesses optimize their email delivery. The features of email API include integrations, documentations, internet protocol (IP) management, deliverability, reporting and analytics, mobile support and security. Its marketing campaign services include segmentation and contact management tools, A/B testing, email template editor and analytics and reporting.
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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