The Ultimate Software Group (NASDAQ:ULTI) and Micro Focus International (NYSE:MFGP) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
This table compares The Ultimate Software Group and Micro Focus International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Ultimate Software Group||4.78%||8.84%||3.38%|
|Micro Focus International||N/A||N/A||N/A|
This is a summary of current recommendations and price targets for The Ultimate Software Group and Micro Focus International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Ultimate Software Group||0||12||1||0||2.08|
|Micro Focus International||2||3||0||0||1.60|
The Ultimate Software Group currently has a consensus target price of $317.63, suggesting a potential upside of ∞. Micro Focus International has a consensus target price of $23.19, suggesting a potential upside of 69.60%. Given The Ultimate Software Group’s stronger consensus rating and higher possible upside, research analysts clearly believe The Ultimate Software Group is more favorable than Micro Focus International.
Micro Focus International pays an annual dividend of $1.11 per share and has a dividend yield of 8.1%. The Ultimate Software Group does not pay a dividend.
Valuation and Earnings
This table compares The Ultimate Software Group and Micro Focus International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Ultimate Software Group||$1.14 billion||0.00||$65.14 million||$2.39||N/A|
|Micro Focus International||N/A||N/A||N/A||N/A||N/A|
The Ultimate Software Group has higher revenue and earnings than Micro Focus International.
Institutional and Insider Ownership
91.2% of The Ultimate Software Group shares are held by institutional investors. Comparatively, 16.1% of Micro Focus International shares are held by institutional investors. 3.0% of The Ultimate Software Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
The Ultimate Software Group has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Micro Focus International has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
The Ultimate Software Group beats Micro Focus International on 9 of the 11 factors compared between the two stocks.
The Ultimate Software Group Company Profile
The Ultimate Software Group, Inc. provides cloud-based human capital management solutions to enterprise companies, mid-market companies, and companies in the strategic market in the United States, Canada, Europe, the Asia Pacific, and internationally. Its UltiPro software solution delivers the functionality businesses need to manage the employee life cycle from recruitment to retirement. The company's UltiPro solution includes feature sets for talent acquisition and onboarding, human resources (HR) service delivery and management, benefits management and online enrollment, payroll, performance management, employee engagement surveying, compensation management with salary planning, budgeting, incentive award planning, succession management, learning management, reporting and analytical decision-making and predictive tools and time capture, scheduling, attendance tracking, and absence accruals; and has role-based features for HR professionals, executives, managers, administrators, and employees. Its UltiPro software solution is delivered through software-as-a-service. The company also provides professional services, and customer support and product maintenance services. It markets its products and services to manufacturing, food services, sports, technology, finance, insurance, retail, real estate, transportation, communications, healthcare, and other services industries primarily through direct sales force. The company was founded in 1990 and is headquartered in Weston, Florida.
Micro Focus International Company Profile
Micro Focus International plc, an infrastructure software company, develops, sells, and supports software products and solutions to small and medium size enterprises. The company offers infrastructure software products that are managed on an investment portfolio. Its product portfolio includes application modernization and connectivity, application delivery management, and IT operations management, as well as security, information management, and Governance. Micro Focus International plc was founded in 1976 and is headquartered in Newbury, the United Kingdom.
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