New Relic (NYSE:NEWR) and Materialise (NASDAQ:MTLS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for New Relic and Materialise, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 1 2 9 1 2.77
Materialise 0 1 1 0 2.50

New Relic currently has a consensus target price of $114.82, suggesting a potential upside of 21.41%. Materialise has a consensus target price of $19.54, suggesting a potential upside of 6.11%. Given New Relic’s stronger consensus rating and higher possible upside, research analysts clearly believe New Relic is more favorable than Materialise.

Volatility and Risk

New Relic has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Materialise has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Earnings & Valuation

This table compares New Relic and Materialise’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Relic $479.23 million 11.47 -$40.89 million ($0.31) -305.06
Materialise $218.16 million 4.42 $3.58 million $0.07 263.00

Materialise has lower revenue, but higher earnings than New Relic. New Relic is trading at a lower price-to-earnings ratio than Materialise, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares New Relic and Materialise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Relic -8.53% -6.57% -2.15%
Materialise 1.56% 2.39% 0.97%

Insider & Institutional Ownership

78.7% of New Relic shares are held by institutional investors. Comparatively, 21.8% of Materialise shares are held by institutional investors. 20.4% of New Relic shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

New Relic beats Materialise on 9 of the 15 factors compared between the two stocks.

About New Relic

New Relic, Inc., a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications. It also provides New Relic Synthetics, which simulates usage and reproduces business-critical functionality that enables its users to test their software throughout the entire development life cycle; New Relic Infrastructure that provides a view of the health and configuration changes for an enterprise's entire host ecosystem across various environments; and New Relic Insights that enables technology and business users to perform real-time analysis. In addition, the company offers New Relic Applied Intelligence platform; New Relic's alerting platform, a centralized notification system that delivers alerts from across the products that make up the New Relic Platform; and New Relic's plugins architecture, which offers a plugin architecture, including application programming interfaces and software development kits for customers and partners to embed and extend its solution into their products. The company sells its products through direct sales organizations, online and offline sales, and marketing activities. New Relic, Inc. was founded in 2007 and is headquartered in San Francisco, California.

About Materialise

Materialise NV provides additive manufacturing software and 3D printing services in Europe, the Americas, Africa, and the Asia-Pacific. The company's Materialise Software segment offers proprietary software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design packages and 3D scanners. This segment serves 3D printing machine original equipment manufacturers; manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third-party distributors. Its Materialise Medical segment provides medical software that allows medical-image based analysis and engineering, as well as patient-specific design of surgical devices and implants to research institutes, hospitals, and medical device companies; and clinical services. This segment has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Global Orthopaedic Technology Pty Ltd; Limacorporate Spa; Mathys AG; Howmedica Osteonics Corp.; and Corin Ltd. It serves medical device companies, hospitals, universities, and industrial companies through its direct sales force, Website, and picture archiving and communication system partners. The company's Materialise Manufacturing segment primarily offers 3D printing services to industrial and commercial customers. It provides design and engineering services, and rapid prototyping and additive manufacturing of production parts; and engineers and 3D prints fixtures that allow automobile manufacturers and their suppliers to enhance the quality control and efficiency of their manufacturing processes. The company was founded in 1990 and is headquartered in Leuven, Belgium.

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