Financial Contrast: HubSpot (HUBS) & MicroStrategy (MSTR)

MicroStrategy (NASDAQ: MSTR) and HubSpot (NYSE:HUBS) are both enterprise software companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Earnings and Valuation



This table compares MicroStrategy and HubSpot’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MicroStrategy $512.16 million 2.98 $90.90 million $3.25 41.08
HubSpot $270.97 million 11.09 -$45.56 million ($1.16) -69.31

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

Profitability

This table compares MicroStrategy and HubSpot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MicroStrategy 14.81% 12.90% 9.48%
HubSpot -12.16% -21.93% -7.61%

Institutional & Insider Ownership

73.0% of MicroStrategy shares are held by institutional investors. Comparatively, 95.7% of HubSpot shares are held by institutional investors. 21.8% of MicroStrategy shares are held by insiders. Comparatively, 12.1% of HubSpot shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

MicroStrategy has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, HubSpot has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for MicroStrategy and HubSpot, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MicroStrategy 0 4 1 0 2.20
HubSpot 0 2 16 0 2.89

MicroStrategy currently has a consensus target price of $155.75, suggesting a potential upside of 16.67%. HubSpot has a consensus target price of $82.93, suggesting a potential upside of 3.15%. Given MicroStrategy’s higher possible upside, equities analysts plainly believe MicroStrategy is more favorable than HubSpot.

Summary

MicroStrategy beats HubSpot on 8 of the 13 factors compared between the two stocks.

About MicroStrategy

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.

About HubSpot

HubSpot, Inc. (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting. The Company’s products include HubSpot Marketing, HubSpot CRM and HubSpot Sales. The Company offers Professional Services and support. It offers professional services to educate and train customers on how to leverage its software platform and inbound marketing methodology to transform how their business attracts, engages and delights customers.

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