Analyzing Marketo (MKTO) and New Relic (NEWR)
Marketo (NASDAQ: MKTO) and New Relic (NYSE:NEWR) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Volatility & Risk
Marketo has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, New Relic has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Marketo and New Relic, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
New Relic has a consensus price target of $49.22, suggesting a potential downside of 0.92%. Given New Relic’s higher possible upside, analysts clearly believe New Relic is more favorable than Marketo.
Institutional & Insider Ownership
74.8% of New Relic shares are owned by institutional investors. 23.1% of New Relic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Marketo and New Relic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Marketo and New Relic’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|New Relic||$284.97 million||9.50||-$46.54 million||($1.13)||-43.96|
Marketo has higher revenue, but lower earnings than New Relic. New Relic is trading at a lower price-to-earnings ratio than Marketo, indicating that it is currently the more affordable of the two stocks.
New Relic beats Marketo on 9 of the 10 factors compared between the two stocks.
Marketo Company Profile
Marketo, Inc. is a United States-based provider of a cloud-based Engagement Marketing software platform, which enables organizations to involve in engagement marketing. The Company’s platform offers a range applications across various categories, including Marketing Automation, which helps to organize personalized multi-channel marketing campaigns and workflows; Email Marketing, which provides the ability to tap the insights captured in the Audience Hub to send e-mail messages; Mobile Engagement, which engages customers on their mobile devices; Digital Ads, which allows marketers to focus on behavioral data captured in the Audience Hub for personalized digital advertisements; Web Personalization, which helps in personalizing experiences to engage people; Marketing Analytics; Predictive Content, which discovers Website assets, such as e-books and case studies; Marketing Calendar, and Sales Insight. It offers solutions, such as Lead Management solution and Consumer Marketing solution.
New Relic Company Profile
New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.
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