Microsoft (MSFT) & Trend Micro (TMICY) Head-To-Head Survey

Microsoft (NASDAQ:MSFT) and Trend Micro (OTCMKTS:TMICY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Microsoft 15.02% 36.69% 11.99%
Trend Micro 17.87% 16.18% 8.71%

Dividends

Microsoft pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Trend Micro pays an annual dividend of $1.17 per share and has a dividend yield of 1.8%. Microsoft pays out 43.3% of its earnings in the form of a dividend. Trend Micro pays out 70.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Microsoft has increased its dividend for 14 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Microsoft and Trend Micro, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsoft 1 2 27 1 2.90
Trend Micro 0 0 0 0 N/A

Microsoft currently has a consensus target price of $120.19, indicating a potential upside of 5.44%. Given Microsoft’s higher probable upside, equities analysts plainly believe Microsoft is more favorable than Trend Micro.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microsoft $110.36 billion 7.95 $16.57 billion $3.88 29.38
Trend Micro $1.33 billion 6.87 $228.65 million $1.65 39.39

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

Volatility and Risk

Microsoft has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

71.8% of Microsoft shares are held by institutional investors. Comparatively, 0.2% of Trend Micro shares are held by institutional investors. 1.5% of Microsoft shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Microsoft beats Trend Micro on 14 of the 17 factors compared between the two stocks.

Microsoft Company Profile

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates through Productivity and Business Processes, Intelligent Cloud, and More Personal Computing segments. The Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises. The Intelligent Cloud segment licenses server products and cloud services, such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform; enterprise services, including premier support and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions, as well as providing training and certification to developers and IT professionals on Microsoft products. The More Personal Computing segment offers Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things, and MSN display advertising; devices comprising Surface, PC accessories, and other intelligent devices; Xbox hardware and software and services; and Bing and Bing Ads search advertising. The company markets and distributes its products through original equipment manufacturers, distributors, and resellers, as well as through online and Microsoft retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.

Trend Micro Company Profile

Trend Micro Incorporated develops and sells security solutions primarily in Japan. The company offers hybrid cloud security solutions, such as data center, cloud, and virtualization security products; network security solutions, including integrated advanced threat prevention and advanced threat detection solutions; user protection solutions comprising endpoint and gateway suites, endpoint security, email security, Web security, SaaS application security, and endpoint detection and response; and support services. It serves finance, insurance, and retail industries, as well as government institutions. Trend Micro Incorporated has a partnership with Moxa Inc. to develop solutions to protect industrial Internet of Things environments. The company was founded in 1988 and is headquartered in Tokyo, Japan.

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply