Analyzing MongoDB (MDB) and Microsoft (MSFT)

MongoDB (NASDAQ: MDB) and Microsoft (NASDAQ:MSFT) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares MongoDB and Microsoft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MongoDB N/A N/A N/A
Microsoft 24.56% 35.23% 11.27%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MongoDB $101.35 million 13.22 -$86.68 million N/A N/A
Microsoft $89.95 billion 6.95 $21.20 billion $2.94 27.58

Microsoft has higher revenue and earnings than MongoDB.

Institutional and Insider Ownership

73.3% of Microsoft shares are owned by institutional investors. 1.5% of Microsoft shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Microsoft pays an annual dividend of $1.68 per share and has a dividend yield of 2.1%. MongoDB does not pay a dividend. Microsoft pays out 57.1% of its earnings in the form of a dividend. MongoDB has increased its dividend for 13 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MongoDB and Microsoft, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MongoDB 0 4 4 0 2.50
Microsoft 2 8 27 0 2.68

MongoDB presently has a consensus target price of $33.83, suggesting a potential upside of 23.66%. Microsoft has a consensus target price of $83.43, suggesting a potential upside of 2.89%. Given MongoDB’s higher possible upside, research analysts clearly believe MongoDB is more favorable than Microsoft.

Summary

Microsoft beats MongoDB on 10 of the 14 factors compared between the two stocks.

MongoDB Company Profile

MongoDB, Inc. offers MongoDB, a general purpose database platform. Its platform is designed to run applications at scale across a broad range of use cases in the cloud, on-premise or in a hybrid environment. Its primary subscription package is MongoDB Enterprise Advanced, which includes its proprietary database server, security, enterprise management capabilities, its graphical user interface, analytics integrations and technical support. It also offers MongoDB Atlas, its cloud hosted database-as-a-service (DBaaS) offering that includes infrastructure and management of its community server offering. The Company’s The MongoDB enterprise database server, called Enterprise Server, is its proprietary database. The Company’s other products include Community Server, a free-to-download version of its database and MongoDB Stitch, a backend-as-a-service. The Company also provides professional services to its customers, including consulting and training.

Microsoft Company Profile

Microsoft Corporation is a technology company. The Company develops, licenses, and supports a range of software products, services and devices. The Company’s segments include Productivity and Business Processes, Intelligent Cloud and More Personal Computing. The Company’s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games, and training and certification of computer system integrators and developers. It also designs, manufactures, and sells devices, including personal computers (PCs), tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories, that integrate with its cloud-based offerings. It offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services.

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