Bottomline Technologies (NASDAQ:EPAY) and Trend Micro (OTCMKTS:TMICY) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Insider & Institutional Ownership
88.9% of Bottomline Technologies shares are owned by institutional investors. Comparatively, 0.1% of Trend Micro shares are owned by institutional investors. 2.4% of Bottomline Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and price targets for Bottomline Technologies and Trend Micro, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bottomline Technologies currently has a consensus target price of $58.92, indicating a potential upside of 50.57%. Given Bottomline Technologies’ higher possible upside, equities research analysts clearly believe Bottomline Technologies is more favorable than Trend Micro.
This table compares Bottomline Technologies and Trend Micro’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Bottomline Technologies has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.
Earnings and Valuation
This table compares Bottomline Technologies and Trend Micro’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bottomline Technologies||$421.96 million||4.07||$9.43 million||$0.97||40.34|
|Trend Micro||$1.45 billion||4.71||$257.66 million||$1.84||26.79|
Trend Micro has higher revenue and earnings than Bottomline Technologies. Trend Micro is trading at a lower price-to-earnings ratio than Bottomline Technologies, indicating that it is currently the more affordable of the two stocks.
Trend Micro pays an annual dividend of $1.23 per share and has a dividend yield of 2.5%. Bottomline Technologies does not pay a dividend. Trend Micro pays out 66.8% of its earnings in the form of a dividend.
About Bottomline Technologies
Bottomline Technologies (de), Inc. provides software as a service based solutions. It operates through four segments: Cloud Solutions, Banking Solutions, Payments and Transactional Documents, and Other. The company's products and services include Paymode-X, a cloud-based payment network, which allows businesses to transition to electronic integrated payables; and cloud-based financial messaging solutions that enable banks and corporations to exchange financial information, such as payment instructions, cash reporting, and other messages to facilitate transaction settlement. It also provides digital banking solutions that provide payments, cash management, and online banking solutions to financial institutions; and cloud-based legal spend management solutions and services that integrate with claims management, and time and billing systems to automate legal invoice management processes. In addition, the company offers cyber fraud and risk management solutions that monitor, replay, and analyze user behavior and payment transactions to flag and stop suspicious activity in real time; and payment and document automation solutions to automate a range of business documents and supply chain processes, as well as related Web-based delivery and document archive. Further, it provides healthcare solutions for patient registration, electronic signature, mobile document, and payments; and consulting, project implementation, and training services, as well as sells printers, check papers, and magnetic ink character recognition toners. The company serves customers in the banking, financial services, insurance, healthcare, technology, retail, communications, education, media, manufacturing, and government industries in the United States, the United Kingdom, Continental Europe, the Asia-Pacific, and the Middle East. Bottomline Technologies (de), Inc. was founded in 1989 and is headquartered in Portsmouth, New Hampshire.
About Trend Micro
Trend Micro Incorporated develops and sells security solutions primarily in Japan. The company offers hybrid cloud security solutions, such as data center, cloud, and virtualization security products; network security solutions, including integrated advanced threat prevention and advanced threat detection solutions; user protection solutions comprising endpoint and gateway suites, endpoint security, email security, Web security, SaaS application security, and endpoint detection and response; and support services. It serves finance, insurance, and retail industries, as well as government institutions. Trend Micro Incorporated has a partnership with Moxa Inc. to develop solutions to protect industrial Internet of Things environments; and strategic partnership with Luxoft Holding, Inc. to offer intrusion detection systems and intrusion prevention systems to detect, mitigate, and respond to cyber-attacks on connected cars. The company was founded in 1988 and is headquartered in Tokyo, Japan.
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