Reviewing Trend Micro (OTCMKTS:TMICY) & Porch Group (NASDAQ:PRCH)

Trend Micro (OTCMKTS:TMICY) and Porch Group (NASDAQ:PRCH) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Volatility & Risk

Trend Micro has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Porch Group has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Trend Micro and Porch Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trend Micro	0	0	0	0	0.00
Porch Group	0	1	5	1	3.00

Porch Group has a consensus target price of $4.18, indicating a potential upside of 12.03%. Given Porch Group’s stronger consensus rating and higher probable upside, analysts plainly believe Porch Group is more favorable than Trend Micro.

Valuation and Earnings

This table compares Trend Micro and Porch Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trend Micro	$1.77 billion	4.38	$76.20 million	$1.21	45.57
Porch Group	$430.30 million	1.04	-$133.93 million	($0.70)	-5.33

Trend Micro has higher revenue and earnings than Porch Group. Porch Group is trading at a lower price-to-earnings ratio than Trend Micro, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Trend Micro and Porch Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trend Micro	9.06%	19.06%	6.57%
Porch Group	-14.55%	N/A	-10.57%

Institutional & Insider Ownership

0.0% of Trend Micro shares are owned by institutional investors. Comparatively, 48.5% of Porch Group shares are owned by institutional investors. 23.5% of Porch Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Trend Micro beats Porch Group on 8 of the 15 factors compared between the two stocks.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.

About Porch Group

Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.