Fair Isaac (NYSE:FICO) versus Silvaco Group (NASDAQ:SVCO) Critical Survey

Fair Isaac (NYSE:FICO) and Silvaco Group (NASDAQ:SVCO) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Profitability

This table compares Fair Isaac and Silvaco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fair Isaac	34.05%	-32.51%	40.61%
Silvaco Group	-30.43%	-15.29%	-10.02%

Analyst Recommendations

This is a breakdown of current ratings for Fair Isaac and Silvaco Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fair Isaac	2	6	9	0	2.41
Silvaco Group	1	0	3	0	2.50

Fair Isaac presently has a consensus target price of $1,014.00, indicating a potential upside of 42.50%. Silvaco Group has a consensus target price of $12.67, indicating a potential upside of 106.30%. Given Silvaco Group’s stronger consensus rating and higher probable upside, analysts plainly believe Silvaco Group is more favorable than Fair Isaac.

Earnings & Valuation

This table compares Fair Isaac and Silvaco Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fair Isaac	$1.99 billion	7.72	$651.95 million	$34.62	20.55
Silvaco Group	$63.06 million	3.30	-$41.21 million	($0.72)	-8.53

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

Institutional & Insider Ownership

85.8% of Fair Isaac shares are held by institutional investors. 3.0% of Fair Isaac shares are held by company insiders. Comparatively, 47.9% of Silvaco Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Fair Isaac has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Silvaco Group has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Summary

Fair Isaac beats Silvaco Group on 10 of the 14 factors compared between the two stocks.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.

About Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.