HubSpot (NYSE: HUBS) and Ebix (NASDAQ:EBIX) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares HubSpot and Ebix’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HubSpot $318.38 million 9.87 -$34.68 million ($1.17) -72.56
Ebix $321.14 million 6.36 $114.36 million $3.07 21.16

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

Institutional and Insider Ownership

96.1% of HubSpot shares are held by institutional investors. Comparatively, 62.0% of Ebix shares are held by institutional investors. 12.1% of HubSpot shares are held by company insiders. Comparatively, 13.0% of Ebix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares HubSpot and Ebix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HubSpot -13.17% -27.99% -10.98%
Ebix 30.69% 22.02% 11.93%

Analyst Ratings

This is a summary of recent ratings and price targets for HubSpot and Ebix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HubSpot 0 2 20 0 2.91
Ebix 0 0 2 0 3.00

HubSpot presently has a consensus target price of $77.78, suggesting a potential downside of 8.39%. Given HubSpot’s higher possible upside, research analysts plainly believe HubSpot is more favorable than Ebix.

Risk and Volatility

HubSpot has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, Ebix has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Dividends

Ebix pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. HubSpot does not pay a dividend. Ebix pays out 9.8% of its earnings in the form of a dividend.

Summary

Ebix beats HubSpot on 9 of the 15 factors compared between the two stocks.

About HubSpot

HubSpot, Inc. (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting. The Company’s products include HubSpot Marketing, HubSpot CRM and HubSpot Sales. The Company offers Professional Services and support. It offers professional services to educate and train customers on how to leverage its software platform and inbound marketing methodology to transform how their business attracts, engages and delights customers.

About Ebix

Ebix, Inc. (Ebix) is a supplier of software and e-commerce solutions to the insurance industry. Ebix provides application software products for the insurance industry, including carrier systems, agency systems and exchanges, as well as custom software development. Ebix conducts its operations through four channels, which include Exchanges, Carrier Systems, Broker Systems and Risk Compliance Solutions (RCS). Ebix operates data exchanges in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, and property and casualty (P&C) insurance. Ebix designs and deploys back-end systems for P&C insurance brokers across the world. Ebix also designs and deploys on-demand and back-end systems for P&C insurance companies. Ebix focus in RCS channel pertains to business process outsourcing services that include providing project management, time and material consulting to clients across the world, and claims adjudication/settlement services.

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