MicroStrategy (NASDAQ:MSTR) vs. Qumu (NASDAQ:QUMU) Financial Contrast

MicroStrategy (NASDAQ:MSTR) and Qumu (NASDAQ:QUMU) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Valuation and Earnings

This table compares MicroStrategy and Qumu’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MicroStrategy $486.33 million 12.94 $34.35 million $1.22 537.87
Qumu $25.36 million 4.37 -$6.44 million ($0.46) -13.70

MicroStrategy has higher revenue and earnings than Qumu. Qumu 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 Qumu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MicroStrategy 0.41% 7.36% 3.97%
Qumu -24.25% -78.80% -18.68%

Risk & Volatility

MicroStrategy has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Qumu has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

69.8% of MicroStrategy shares are owned by institutional investors. Comparatively, 32.6% of Qumu shares are owned by institutional investors. 26.9% of MicroStrategy shares are owned by company insiders. Comparatively, 14.5% of Qumu shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for MicroStrategy and Qumu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MicroStrategy 4 1 1 0 1.50
Qumu 0 1 2 0 2.67

MicroStrategy presently has a consensus price target of $276.00, suggesting a potential downside of 57.94%. Qumu has a consensus price target of $8.50, suggesting a potential upside of 34.92%. Given Qumu’s stronger consensus rating and higher probable upside, analysts plainly believe Qumu is more favorable than MicroStrategy.

Summary

MicroStrategy beats Qumu on 11 of the 14 factors compared between the two stocks.

MicroStrategy Company Profile

MicroStrategy Incorporated provides enterprise analytics software and services worldwide. It offers MicroStrategy 2021, an enterprise platform, which provides a modern analytics experience by delivering insights across multiple devices to users via hyperintelligence products, visualization and reporting capabilities, mobility features, and custom applications developed on the platform; analysts and data scientists with seamless access to trusted, governed data directly within their tools; and APIs and gateways, multiple deployment options, enterprise semantic graph, scalability, and security. The company also provides MicroStrategy Support that helps customers to achieve their system availability and uptime goals, and to improve the overall experience through highly responsive troubleshooting and proactive technical product support. In addition, it offers MicroStrategy Consulting that provides customers with architecture and implementation services to help them quickly realize results, and helps to achieve returns on investment derived from understanding of data; and MicroStrategy Education that offers free and paid learning options. The company provides its services through enterprise sales force and channel partners. It serves companies from a range of industries, including retail, consulting, technology, manufacturing, finance, banking, insurance, healthcare, education, and telecommunications, as well as the public sector. The company was founded in 1989 and is headquartered in Tysons Corner, Virginia.

Qumu Company Profile

Qumu Corporation provides tools to create, manage, secure, distribute, and deliver live and on-demand video content for the enterprises. It offers an end-to-end video creation, management, and delivery solution through the sale of software licenses and hardware, software on server appliance, software-enabled devices, and a cloud-hosted software-as-a-service platform. The company also provides maintenance and support, professional, and other services. The company markets its products to customers in the banking, finance and insurance, manufacturing, services and consulting, telecom and technology, and biotech and health care markets, as well as to government customers through direct sales and channel partners in North America, Europe, and Asia. The company was formerly known as Rimage Corporation and changed its name to Qumu Corporation in September 2013. Qumu Corporation was founded in 1978 and is headquartered in Minneapolis, Minnesota.

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