Trimble (TRMB) and Tableau Software (DATA) Critical Review

Trimble (NASDAQ: TRMB) and Tableau Software (NYSE:DATA) are both mid-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

89.7% of Trimble shares are held by institutional investors. Comparatively, 81.1% of Tableau Software shares are held by institutional investors. 1.4% of Trimble shares are held by company insiders. Comparatively, 29.0% of Tableau Software shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Trimble has a beta of 2.36, indicating that its stock price is 136% more volatile than the S&P 500. Comparatively, Tableau Software has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Trimble and Tableau Software, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trimble 0 5 5 0 2.50
Tableau Software 2 16 13 0 2.35

Trimble currently has a consensus price target of $41.22, suggesting a potential downside of 3.80%. Tableau Software has a consensus price target of $71.16, suggesting a potential upside of 1.25%. Given Tableau Software’s higher possible upside, analysts clearly believe Tableau Software is more favorable than Trimble.

Earnings & Valuation

This table compares Trimble and Tableau Software’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trimble $2.36 billion 4.57 $132.40 million $0.76 56.38
Tableau Software $826.94 million 6.78 -$144.44 million ($2.11) -33.31

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

Profitability

This table compares Trimble and Tableau Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trimble 7.66% 12.97% 8.05%
Tableau Software -18.76% -20.89% -12.59%

Summary

Trimble beats Tableau Software on 10 of the 14 factors compared between the two stocks.

About Trimble

Trimble Inc., formerly Trimble Navigation Limited, is engaged in providing technology solutions that enable professionals and field mobile workers to transform their work processes. The Company’s solutions are used across a range of industries, including agriculture, architecture, civil engineering, survey and land administration, construction, geospatial, government, natural resources, transportation and utilities. The Company’s business segments include Building and Infrastructure, Geospatial, Resource and utilities and Transportation. The Buildings and Infrastructure segment serves customers working in architecture, engineering, construction and operations and maintenance. The Geospatial segment primarily serves customers working in surveying, engineering, government and land management. The Resources and Utilities segment serves customers working in agriculture, forestry, and utilities. The Transportation segment serves customers working in transportation.

About Tableau Software

Tableau Software, Inc. (Tableau) offers software products. The Company’s products are used by people of diverse skill levels across all kinds of organizations. The Company’s products are used by people of skill levels across all kinds of organizations. Its technologies include visual query language (VizQL) and Hybrid Data Architecture. VizQL unifies the formerly disparate tasks of query and visualization and allows users to transform questions into pictures without the need for software scripts, chart wizards or dialogue boxes. The Company’s products include Tableau Desktop, a self-service product for anyone with data; Tableau Server, a business intelligence platform for organizations; Tableau Online, a hosted software-as-a-service (SaaS) version of Tableau Server; Tableau Public, a cloud-based platform for analyzing and sharing public data, and Vizable, an application used to analyze data on a tablet.

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