Financial Survey: Mitel Networks (MITL) vs. MicroStrategy (MSTR)
Mitel Networks (NASDAQ: MITL) and MicroStrategy (NASDAQ:MSTR) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
This is a breakdown of current ratings and recommmendations for Mitel Networks and MicroStrategy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation and Earnings
This table compares Mitel Networks and MicroStrategy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mitel Networks||$987.60 million||0.95||-$217.30 million||($2.06)||-3.79|
|MicroStrategy||$512.16 million||3.02||$90.90 million||$6.49||20.80|
MicroStrategy has lower revenue, but higher earnings than Mitel Networks. Mitel Networks is trading at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
79.7% of Mitel Networks shares are owned by institutional investors. Comparatively, 74.3% of MicroStrategy shares are owned by institutional investors. 16.5% of Mitel Networks shares are owned by company insiders. Comparatively, 21.8% of MicroStrategy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Mitel Networks has a beta of 2.68, indicating that its share price is 168% more volatile than the S&P 500. Comparatively, MicroStrategy has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.
This table compares Mitel Networks and MicroStrategy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
MicroStrategy beats Mitel Networks on 7 of the 12 factors compared between the two stocks.
Mitel Networks Company Profile
Mitel Networks Corporation is a provider of business communications and collaboration software, services and solutions. The Company’s segments include Cloud and Enterprise. The Enterprise segment sells and supports products and services for premise-based customers. The Cloud segment sells and supports products that are deployed in a cloud environment. The Company’s product portfolio includes premises and cloud-based enterprise communications infrastructure products and solutions, unified communications and collaboration (UCC) and contact center applications and a range of service offerings. The Company’s Cloud Division offers a range of private, public, hybrid and mobile Software as a Service (SaaS) solutions for businesses of all sizes. This includes Unified Communications as a Service (UCaaS) solutions. Its Enterprise Division portfolio integrates voice, UCC applications, and contact center applications on fixed and mobile networks across a range of end user devices.
MicroStrategy Company Profile
MicroStrategy Incorporated is a provider of enterprise software platforms around the world. The Company is engaged in the design, development, marketing and sales of its software platform through licensing arrangements, and cloud-based subscriptions and related services. It focuses on providing enterprise customers with software platform and services for deploying intelligence applications. Its platform, MicroStrategy 10, consolidates analytics and mobility in a single platform, available both as on-premise software and as a hosted service offering in MicroStrategy Cloud. Its enterprise platform combines business intelligence functionality with data discovery, mobile analytics and identity intelligence generated by digital credentials. MicroStrategy 10 consists of MicroStrategy Analytics, MicroStrategy Mobile and Usher. MicroStrategy Analytics offers solutions to organizations to analyze a range of data and distribute actionable business insight throughout an enterprise.
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