Critical Comparison: National Instruments Corporation (NATI) & Coupa Software (COUP)
National Instruments Corporation (NASDAQ: NATI) and Coupa Software (NASDAQ:COUP) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Earnings and Valuation
This table compares National Instruments Corporation and Coupa Software’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|National Instruments Corporation||$1.25 billion||4.21||$189.72 million||$0.78||51.74|
|Coupa Software||$145.73 million||11.22||-$31.81 million||($0.95)||-32.49|
National Instruments Corporation has higher revenue and earnings than Coupa Software. Coupa Software is trading at a lower price-to-earnings ratio than National Instruments Corporation, indicating that it is currently the more affordable of the two stocks.
National Instruments Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. Coupa Software does not pay a dividend. National Instruments Corporation pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
80.4% of National Instruments Corporation shares are owned by institutional investors. Comparatively, 64.4% of Coupa Software shares are owned by institutional investors. 9.9% of National Instruments Corporation shares are owned by company insiders. Comparatively, 32.1% of Coupa Software shares are owned by company 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 National Instruments Corporation and Coupa Software’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Instruments Corporation||8.11%||9.81%||7.36%|
This is a summary of current ratings for National Instruments Corporation and Coupa Software, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Instruments Corporation||0||1||2||0||2.67|
National Instruments Corporation presently has a consensus target price of $38.33, suggesting a potential downside of 5.02%. Coupa Software has a consensus target price of $36.09, suggesting a potential upside of 16.91%. Given Coupa Software’s higher probable upside, analysts plainly believe Coupa Software is more favorable than National Instruments Corporation.
National Instruments Corporation beats Coupa Software on 9 of the 14 factors compared between the two stocks.
About National Instruments Corporation
National Instruments Corporation (NI) designs, manufactures and sells systems to engineers and scientists. The Company offers a line of measurement, automation and control products. It offers products, technology and services, which include system design software, programming tools, application software, modular hardware products and related driver software, production test systems, NI education platform, software products for teaching and hardware products for teaching. It also offers NI Services, including hardware services and maintenance, software maintenance services, and training and certification. Its products are used across various industries in a range of applications, including research and development, simulation and modeling, prototype and validation, production testing and industrial control and field and factory service and repair. It serves various industries and applications, such as consumer electronics, commercial aerospace, telecommunications and others.
About Coupa Software
Coupa Software Incorporated is a United States-based company, which provides a unified, cloud-based spend management platform that connects organizations with suppliers globally. The Company offers spend management cloud applications, which are pre-integrated. The platform offers consumerized financial applications. Its spend management suite includes procurement, invoicing, expenses, sourcing, inventory, contract lifecycle management, budgeting, analytics, open business network, supplier information management and storefront. The platform offers features, such as procure-to-pay solution; online invoice management, and inventory management and tracking software system. Its solutions for business needs include financial compliance and mobile productivity. The Company’s solutions for enterprise resource planning (ERP) include Oracle and NetSuite. The Company offers solutions for industries, including financial, healthcare, oil and gas, retail, technology, and food and beverage.
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