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

Profitability

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

Net Margins Return on Equity Return on Assets
Microsoft Corporation 23.57% 36.81% 11.46%
Amber Road -22.59% -53.03% -15.47%

Risk & Volatility

Microsoft Corporation has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Amber Road has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Dividends

Microsoft Corporation pays an annual dividend of $1.56 per share and has a dividend yield of 2.0%. Amber Road does not pay a dividend. Microsoft Corporation pays out 57.8% of its earnings in the form of a dividend. Microsoft Corporation has raised its dividend for 13 consecutive years.

Earnings & Valuation

This table compares Microsoft Corporation and Amber Road’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Microsoft Corporation $89.95 billion 6.53 $30.43 billion $2.70 28.26
Amber Road $76.29 million 2.91 -$10.96 million ($0.63) -13.03

Microsoft Corporation has higher revenue and earnings than Amber Road. Amber Road 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

73.4% of Microsoft Corporation shares are held by institutional investors. Comparatively, 69.3% of Amber Road shares are held by institutional investors. 3.0% of Microsoft Corporation shares are held by insiders. Comparatively, 13.1% of Amber Road shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Microsoft Corporation and Amber Road, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsoft Corporation 2 7 27 0 2.69
Amber Road 0 0 3 0 3.00

Microsoft Corporation currently has a consensus target price of $77.39, suggesting a potential upside of 1.44%. Amber Road has a consensus target price of $12.33, suggesting a potential upside of 50.22%. Given Amber Road’s stronger consensus rating and higher probable upside, analysts plainly believe Amber Road is more favorable than Microsoft Corporation.

Summary

Microsoft Corporation beats Amber Road on 12 of the 16 factors compared between the two stocks.

About Microsoft Corporation

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.

About Amber Road

Amber Road, Inc. is a provider of cloud-based global trade management (GTM) solutions. The Company’s GTM solutions include modules for logistics contract and rate management, supply chain visibility and event management, international trade compliance, and Global Knowledge trade content database to importers and exporters, non-vessel owning common carriers (resellers), and ocean carriers. The Company delivers its GTM solution using a software-as-a-service (SaaS) model. The Company’s solution automates the global supply chain across sourcing, logistics, cross-border trade and regulatory compliance activities. The Company’s GTM solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in approximately 145 countries, and a global supply chain network connecting its customers with the trading partners, including suppliers, freight forwarders, customs brokers and transportation carriers.

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