Reviewing MicroStrategy (MSTR) and Instructure (INST)
MicroStrategy (NASDAQ: MSTR) and Instructure (NYSE:INST) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional and Insider Ownership
76.3% of MicroStrategy shares are owned by institutional investors. Comparatively, 78.3% of Instructure shares are owned by institutional investors. 21.8% of MicroStrategy shares are owned by company insiders. Comparatively, 12.8% of Instructure shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for MicroStrategy and Instructure, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MicroStrategy currently has a consensus target price of $170.00, indicating a potential upside of 35.08%. Instructure has a consensus target price of $36.14, indicating a potential upside of 7.09%. Given MicroStrategy’s higher probable upside, research analysts clearly believe MicroStrategy is more favorable than Instructure.
Valuation and Earnings
This table compares MicroStrategy and Instructure’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MicroStrategy||$511.19 million||2.32||$109.23 million||$7.24||17.38|
|Instructure||$133.71 million||7.42||-$47.35 million||($1.79)||-18.85|
MicroStrategy has higher revenue and earnings than Instructure. Instructure is trading at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.
This table compares MicroStrategy and Instructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
MicroStrategy has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Instructure has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.
MicroStrategy beats Instructure on 8 of the 14 factors compared between the two stocks.
MicroStrategy Company Profile
MicroStrategy Incorporated is a provider of enterprise software platforms around the world. The Company is engaged in the design, development, marketing and sales of its software platform through licensing arrangements, and cloud-based subscriptions and related services. It focuses on providing enterprise customers with software platform and services for deploying intelligence applications. Its platform, MicroStrategy 10, consolidates analytics and mobility in a single platform, available both as on-premise software and as a hosted service offering in MicroStrategy Cloud. Its enterprise platform combines business intelligence functionality with data discovery, mobile analytics and identity intelligence generated by digital credentials. MicroStrategy 10 consists of MicroStrategy Analytics, MicroStrategy Mobile and Usher. MicroStrategy Analytics offers solutions to organizations to analyze a range of data and distribute actionable business insight throughout an enterprise.
Instructure Company Profile
Instructure, Inc. provides cloud-based learning management platform for academic institutions and companies across the world. The Company operates in the cloud-based learning management systems segment. The Company builds its learning management applications, Canvas for the education market and Bridge for the corporate market, to enable its customers to develop, deliver and manage face-to-face and online learning experiences. The Company develops software that students, teachers and employees use to help achieve their education and learning goals. Its applications develop academic and corporate learning by providing a platform for instructors and learners, enabling frequent and open interactions, streamlining workflow, and allowing the creation and sharing of content. The Company’s platform runs on a cloud-based architecture that enables users to teach, learn and engage across a range of application environments, operating systems, devices and locations.
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