Callidus Software (NASDAQ: CALD) and Microsoft Corporation (NASDAQ:MSFT) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Profitability

This table compares Callidus Software and Microsoft Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Callidus Software -10.08% -6.25% -3.79%
Microsoft Corporation 23.57% 36.81% 11.46%

Analyst Ratings

This is a summary of current ratings and price targets for Callidus Software and Microsoft Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callidus Software 0 1 8 0 2.89
Microsoft Corporation 2 7 25 0 2.68

Callidus Software presently has a consensus price target of $25.13, indicating a potential upside of 0.50%. Microsoft Corporation has a consensus price target of $76.82, indicating a potential upside of 3.89%. Given Microsoft Corporation’s higher probable upside, analysts plainly believe Microsoft Corporation is more favorable than Callidus Software.

Risk & Volatility

Callidus Software has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Microsoft Corporation has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Valuation & Earnings

This table compares Callidus Software and Microsoft Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Callidus Software $227.99 million 7.42 -$7.84 million ($0.37) -67.57
Microsoft Corporation $89.95 billion 2.80 $30.43 billion $2.70 27.39

Microsoft Corporation has higher revenue and earnings than Callidus Software. Callidus Software is trading at a lower price-to-earnings ratio than Microsoft Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

95.6% of Callidus Software shares are owned by institutional investors. Comparatively, 73.5% of Microsoft Corporation shares are owned by institutional investors. 1.6% of Callidus Software shares are owned by company insiders. Comparatively, 3.0% of Microsoft Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Microsoft Corporation pays an annual dividend of $1.56 per share and has a dividend yield of 2.1%. Callidus Software does not pay a dividend. Microsoft Corporation pays out 57.8% of its earnings in the form of a dividend. Callidus Software has raised its dividend for 13 consecutive years.

Summary

Microsoft Corporation beats Callidus Software on 11 of the 16 factors compared between the two stocks.

Callidus Software Company Profile

Callidus Software Inc. (Callidus) is a provider of cloud-based sales, marketing, learning and customer experience solutions. The Company’s CallidusCloud enables its customers to manage their Lead to Money process with a suite of solutions that identify leads, implement territory and quota plans, enable sales forces, automate bid configuration pricing and quoting, manage contracts, streamline sales compensation and capture customer feedback, among others. Lead to Money is a process designed to help companies respond to the changing role of sales and marketing in the redefined buying cycle. The company’s Lead to Money suite and technology solutions include Lead, Planning, Enablement, Quotes and Proposals, Contracts, Incentives, Customer Experience and Technology. The Company provides a range of services to its customers, which include professional services, business process outsourcing services, maintenance and technical support services, and education services.

Microsoft Corporation Company Profile

Microsoft Corporation is a technology company. The Company develops, licenses, and supports a range of software products, services and devices. The Company’s segments include Productivity and Business Processes, Intelligent Cloud and More Personal Computing. The Company’s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games, and training and certification of computer system integrators and developers. It also designs, manufactures, and sells devices, including personal computers (PCs), tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories, that integrate with its cloud-based offerings. It offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services.

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