Tyler Technologies (NASDAQ: INSE) and Inspired Entertainment (NASDAQ:INSE) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Earnings and Valuation

This table compares Tyler Technologies and Inspired Entertainment’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tyler Technologies $840.66 million 10.78 $163.94 million $3.18 73.75
Inspired Entertainment $122.54 million 1.23 -$49.11 million ($2.68) -2.61

Tyler Technologies has higher revenue and earnings than Inspired Entertainment. Inspired Entertainment is trading at a lower price-to-earnings ratio than Tyler Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tyler Technologies and Inspired Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tyler Technologies 19.91% 11.70% 8.77%
Inspired Entertainment -16.34% N/A -10.50%

Analyst Ratings

This is a breakdown of recent recommendations for Tyler Technologies and Inspired Entertainment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tyler Technologies 0 3 8 0 2.73
Inspired Entertainment 0 0 0 0 N/A

Tyler Technologies currently has a consensus price target of $225.09, indicating a potential downside of 4.02%. Given Tyler Technologies’ higher possible upside, equities research analysts clearly believe Tyler Technologies is more favorable than Inspired Entertainment.

Risk & Volatility

Tyler Technologies has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of -0.35, meaning that its share price is 135% less volatile than the S&P 500.

Insider & Institutional Ownership

91.6% of Tyler Technologies shares are held by institutional investors. Comparatively, 33.5% of Inspired Entertainment shares are held by institutional investors. 4.7% of Tyler Technologies shares are held by company insiders. Comparatively, 21.8% of Inspired Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Tyler Technologies beats Inspired Entertainment on 12 of the 13 factors compared between the two stocks.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector in the United States and internationally. It operates through two segments, Enterprise Software, and Appraisal and Tax. The company's financial management solutions include modular fund accounting systems for government agencies or not-for-profit entities; and utility billing systems for the billing and collection of metered and non-metered services. It also offers products to automate various city functions, such as municipal courts, parking tickets, equipment and project costing, animal and business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management; and student information and transportation solutions for K-12 schools. In addition, the company provides a suite of judicial solutions comprising court case management, court and law enforcement, prosecutor, and supervision systems to handle multi-jurisdictional county or statewide implementations, and single county systems, as well as court case management solutions to automate and track various aspects of municipal courts and offices; public safety software solutions; systems and software solutions to automate the appraisal and assessment of real and personal properties, as well as tax applications for agencies that bill and collect taxes; planning, regulatory, and maintenance software solutions for public sector agencies; and software applications to enhance and automate records and document management operations. Further, it offers software as a service arrangements and electronic document filing solutions for courts and law offices; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. was founded in 1966 and is based in Plano, Texas.

About Inspired Entertainment

Inspired Entertainment, Inc., a games technology company, focuses on the development and sale of software systems and digital terminals worldwide. The company operates through two segments, Service Based Gaming (SBG) and Virtual Sports. The SBG segment designs, develops, markets, and distributes a portfolio of products and services through its digital network architecture to betting offices, casinos, gaming hall and bingo operators, and lotteries, as well as government affiliated and licensed operators. The Virtual Sports segment offers gaming software and content to regulated betting operators, lotteries, casinos, online operators, and other gaming and lottery operators. It operates approximately 25,000 digital gaming terminals; and supplies its virtual sports products in approximately 35,000 venues and approximately 100 Websites. The company was founded in 2002 and is headquartered in London, the United Kingdom.

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