Mulesoft (NYSE: MULE) and King Digital Entertainment (NYSE:KING) are both mid-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Earnings & Valuation

This table compares Mulesoft and King Digital Entertainment’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mulesoft $187.74 million 16.77 -$49.59 million ($0.72) -33.65
King Digital Entertainment N/A N/A N/A $1.75 10.29

King Digital Entertainment has lower revenue, but higher earnings than Mulesoft. Mulesoft is trading at a lower price-to-earnings ratio than King Digital Entertainment, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mulesoft and King Digital Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mulesoft -25.84% -49.63% -18.06%
King Digital Entertainment 19.58% 33.71% 24.95%

Analyst Recommendations

This is a summary of recent ratings for Mulesoft and King Digital Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mulesoft 0 3 7 0 2.70
King Digital Entertainment 0 0 0 0 N/A

Mulesoft presently has a consensus target price of $27.75, suggesting a potential upside of 14.53%. Given Mulesoft’s higher probable upside, research analysts plainly believe Mulesoft is more favorable than King Digital Entertainment.

Institutional & Insider Ownership

23.2% of Mulesoft shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

King Digital Entertainment beats Mulesoft on 5 of the 9 factors compared between the two stocks.

About Mulesoft

MuleSoft, Inc. is engaged in providing a software platform that connects a range of technologies. The Company enables organizations to manage and secure the flow of data between all systems in the enterprise. The Company offers organizations to create agile infrastructures. The Company has developed Anypoint Platform. The Company’s customers use its Anypoint Platform to connect their applications, data, and devices into an application network where systems are pluggable instead of glued together with custom integration code. The application network enables a self-serve infrastructure through discoverable building blocks, or nodes, that can be used and reused to rapidly compose applications. With an application network built with Anypoint Platform, organizations can transform into composable enterprises.

About King Digital Entertainment

King Digital Entertainment plc is an interactive entertainment company for the mobile world. The Company has four franchises: Candy Crush, Farm Heroes, Bubble Witch and Pet Rescue. The Company develops and publishes games that can be played on its king.com and royalgames.com Websites, Facebook and, mobile platforms, such as iOS and Android. The Company is involved in developing and monetizing digital games on multiple platforms. The Company’s games include Candy Crush Saga, Candy Crush Soda Saga, Farm Heroes Saga, Pet Rescue Saga and Bubble Witch 2 Saga. As of December 31, 2014, the Company had 533 million monthly active users (MAUs), 149 million daily active users (DAUs), 356 million monthly unique users (MUUs) and 8,344 million monthly unique payers (MUPs).

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