Contrasting Ebix (NASDAQ:EBIX) & Tufin Software Technologies (NASDAQ:TUFN)

Ebix (NASDAQ:EBIX) and Tufin Software Technologies (NYSE:TUFN) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Profitability

This table compares Ebix and Tufin Software Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ebix 16.72% 22.55% 8.10%
Tufin Software Technologies N/A N/A N/A

Insider and Institutional Ownership

72.5% of Ebix shares are held by institutional investors. Comparatively, 4.5% of Tufin Software Technologies shares are held by institutional investors. 14.2% of Ebix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ebix and Tufin Software Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ebix 0 1 1 0 2.50
Tufin Software Technologies 0 2 6 0 2.75

Ebix currently has a consensus target price of $36.30, indicating a potential upside of 7.08%. Tufin Software Technologies has a consensus target price of $29.57, indicating a potential upside of 87.40%. Given Tufin Software Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Tufin Software Technologies is more favorable than Ebix.

Earnings and Valuation

This table compares Ebix and Tufin Software Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ebix $497.83 million 2.08 $93.14 million $3.73 9.09
Tufin Software Technologies $84.98 million 6.02 -$4.26 million N/A N/A

Ebix has higher revenue and earnings than Tufin Software Technologies.

Dividends

Ebix pays an annual dividend of $0.30 per share and has a dividend yield of 0.9%. Tufin Software Technologies does not pay a dividend. Ebix pays out 8.0% of its earnings in the form of a dividend.

Summary

Ebix beats Tufin Software Technologies on 8 of the 13 factors compared between the two stocks.

About Ebix

Ebix, Inc. provides software and e-commerce solutions to insurance, finance, healthcare, and e-learning industries. It offers software development, customization, and consulting services to various entities in the insurance industry, including carriers, brokers, exchanges, and standard making bodies. The company operates data exchanges in the areas of finance, travel, life insurance, annuities, employee health benefits, risk management, workers compensation, insurance underwriting, and property and casualty (P&C) insurance. It also focuses on designing and deploying back-end systems, such as eGlobal, which targets multinational P&C insurance brokers; WinBeat that targets P&C brokers in the Australian and New Zealand markets; and EbixASP, a system for the P&C insurance brokers in the United States. In addition, the company offers business process outsourcing services that include providing domain intensive project management, time, and material based consulting engagements to clients; creation and tracking of certificates of insurance issued in the United States and Australian markets; and the provision of claims adjudication and settlement, call center, and back office support, as well as a software-based service for the issuance of certificates of insurance and a service to track certificates of insurance for corporate clients in the United States and Australia. Further, the company offers carrier systems, which pertains to the designing and deploying on-demand back-end systems for P&C insurance companies. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Johns Creek, Georgia.

About Tufin Software Technologies

Tufin Ltd. provides security policy management solutions. It offers Orchestration Suite, a solution for automatically designing, provisioning, analyzing, and auditing network security changes from the application layer down to the network layer; SecureTrack, a management platform for firewalls, routers, load-balancers, and additional network devices; SecureChange, a solution for automating firewall and router configuration changes across complex networks; SecureApp, a solution that enables organizations to manage network connectivity and security policies; and Tufin Iris, a cloud-native solution that enables cloud operations and IT security teams to gain visibility and control of security policies for cloud-based applications. The company provides solutions in the areas of change management, software-defined data center, firewall optimization, payment card industry data security standard compliance, network segmentation, continuous compliance, risk management, next generation firewall, and business continuity aspects for firewall/network administrators, chief security officers/chief information security officers, compliance officers, service providers, independent auditors, application owners, and chief information officers. It serves telecommunication, financial, energy and utility, retail, government, transportation, and pharmaceutical markets through a network of partners worldwide. The company was founded in 2004 and is headquartered in Ramat Gan, Israel with additional offices in North America, Europe, and the Asia Pacific.

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