Financial Survey: Solera Holdings (SLH) vs. National Instruments Corporation (NASDAQ:NATI)

National Instruments Corporation (NASDAQ: NATI) and Solera Holdings (NYSE:SLH) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Profitability

This table compares National Instruments Corporation and Solera Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Instruments Corporation 8.11% 9.81% 7.36%
Solera Holdings 18.15% N/A 6.01%

Analyst Recommendations

This is a breakdown of current recommendations for National Instruments Corporation and Solera Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Instruments Corporation 0 1 2 0 2.67
Solera Holdings 0 0 0 0 N/A

National Instruments Corporation presently has a consensus price target of $38.33, suggesting a potential downside of 16.45%. Given National Instruments Corporation’s higher probable upside, analysts plainly believe National Instruments Corporation is more favorable than Solera Holdings.

Earnings & Valuation

This table compares National Instruments Corporation and Solera Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Instruments Corporation $1.25 billion 4.79 $189.72 million $0.78 58.82
Solera Holdings N/A N/A N/A N/A N/A

National Instruments Corporation has higher revenue and earnings than Solera Holdings.

Dividends

National Instruments Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. Solera Holdings does not pay a dividend. National Instruments Corporation pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Solera Holdings has increased its dividend for 7 consecutive years.

Insider & Institutional Ownership

80.4% of National Instruments Corporation shares are held by institutional investors. 9.9% of National Instruments Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

National Instruments Corporation beats Solera Holdings on 8 of the 11 factors compared between the two stocks.

About National Instruments Corporation

National Instruments Corporation (NI) designs, manufactures and sells systems to engineers and scientists. The Company offers a line of measurement, automation and control products. It offers products, technology and services, which include system design software, programming tools, application software, modular hardware products and related driver software, production test systems, NI education platform, software products for teaching and hardware products for teaching. It also offers NI Services, including hardware services and maintenance, software maintenance services, and training and certification. Its products are used across various industries in a range of applications, including research and development, simulation and modeling, prototype and validation, production testing and industrial control and field and factory service and repair. It serves various industries and applications, such as consumer electronics, commercial aerospace, telecommunications and others.

About Solera Holdings

Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.

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