MINDBODY (NASDAQ: MB) and Gigamon (NYSE:GIMO) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Valuation and Earnings

This table compares MINDBODY and Gigamon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MINDBODY $159.77 million 8.17 -$8.80 million ($0.45) -62.55
Gigamon $307.25 million 4.94 $10.55 million $0.07 579.29

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

Volatility and Risk

MINDBODY has a beta of -0.42, indicating that its share price is 142% less volatile than the S&P 500. Comparatively, Gigamon has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Institutional and Insider Ownership

92.8% of MINDBODY shares are owned by institutional investors. Comparatively, 97.8% of Gigamon shares are owned by institutional investors. 8.2% of MINDBODY shares are owned by insiders. Comparatively, 4.5% of Gigamon shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for MINDBODY and Gigamon, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MINDBODY 0 2 7 0 2.78
Gigamon 0 6 4 0 2.40

MINDBODY currently has a consensus price target of $31.06, suggesting a potential upside of 10.32%. Gigamon has a consensus price target of $46.30, suggesting a potential upside of 14.18%. Given Gigamon’s higher possible upside, analysts clearly believe Gigamon is more favorable than MINDBODY.

Profitability

This table compares MINDBODY and Gigamon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MINDBODY -11.34% -12.49% -9.51%
Gigamon 0.95% 0.41% 0.28%

Summary

Gigamon beats MINDBODY on 9 of the 13 factors compared between the two stocks.

MINDBODY Company Profile

MINDBODY, Inc. is a provider of cloud-based business management software for the wellness services industry and operates as a consumer marketplace with local business subscribers on its platform. The Company’s subscribers provide a range of wellness services to active consumers. Its integrated software and payments platform helps business owners in the wellness services industry run, market and build their businesses. It also helps consumers discover, evaluate, engage and transact with these businesses through the Web and mobile devices. The platform addresses various aspects of operating a wellness business, including client scheduling and online booking; retail point-of-sale; analytics and reporting; user experience; mobility; social integration; dynamic cloud-based architecture; open platform for third-party application development; integration with other cloud-based partners, and security and compliance.

Gigamon Company Profile

Gigamon Inc. offers a solution that delivers visibility and control of data-in-motion traversing enterprise, federal and service provider networks. The Company’s Visibility Platform consists of a distributed system of nodes (that in combination establish a Visibility Fabric). The Visibility Platform includes physical appliances and virtual nodes that can be deployed in data centers, central offices, virtualized/private cloud/public cloud environments, and small form-factor remote site appliances, which in combination enable pervasive visibility of network infrastructures. Its GigaSECURE Security Delivery Platform enables security teams and information technology (IT) personnel to gain visibility into their IT infrastructure by forwarding selected traffic of interest from network, server and remote location infrastructure to security, management, analysis and compliance tools in a manner that is optimized for specific uses or functions.

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