Head-To-Head Review: Software Aktiengesellschaft (OTCMKTS:STWRY) and Constellation Software (OTCMKTS:CNSWF)

Software Aktiengesellschaft (OTCMKTS:STWRY) and Constellation Software (OTCMKTS:CNSWF) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Valuation and Earnings

This table compares Software Aktiengesellschaft and Constellation Software”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Software Aktiengesellschaft	N/A	N/A	N/A	$0.34	24.53
Constellation Software	$11.62 billion	4.06	$512.00 million	$35.06	63.46

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

Dividends

Software Aktiengesellschaft pays an annual dividend of $0.13 per share and has a dividend yield of 1.5%. Constellation Software pays an annual dividend of $4.00 per share and has a dividend yield of 0.2%. Software Aktiengesellschaft pays out 37.9% of its earnings in the form of a dividend. Constellation Software pays out 11.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Software Aktiengesellschaft and Constellation Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Software Aktiengesellschaft	N/A	N/A	N/A
Constellation Software	7.60%	48.87%	13.09%

Institutional & Insider Ownership

0.2% of Software Aktiengesellschaft shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Software Aktiengesellschaft and Constellation Software, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Software Aktiengesellschaft	0	0	0	0	0.00
Constellation Software	0	1	6	1	3.00

Summary

Constellation Software beats Software Aktiengesellschaft on 10 of the 12 factors compared between the two stocks.

About Software Aktiengesellschaft

Software Aktiengesellschaft provides software development, licensing, maintenance, and IT services in Germany, the United States, and internationally. It operates in three segments: Digital Business, Adabas & Natural, and Professional Services. The company offers Internet of Things (IoT) and analytics solutions comprising Cumulocity IoT for integrating digital equipment and sensors through an IoT device management and application enablement platform, as well as provides streaming analytics for big data analytics in real time and solutions for predictive analytics, artificial intelligence (AI), and machine learning; and TrendMiner, an intuitive web-based analytics platform for visualization of industrial processes and process data. It also provides webMethods that integrate systems, applications, and processes through application programming interfaces or direct connections and orchestrate them in the form of microservices; ARIS for modeling, documenting, and optimizing business processes; Alfabet, which enables enterprise architecture mapping and optimal decision making for IT investments; Adabas & Natural for transaction processing; and CONNX for data integration, virtualization, and replication. In addition, the company offers professional services, which include implementation, development, and upgrade/migration services. Software Aktiengesellschaft was founded in 1969 and is headquartered in Darmstadt, Germany.

About Constellation Software

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.