Instructure (INST) & Trend Micro (OTCMKTS:TMICY) Head-To-Head Survey

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Trend Micro and Instructure, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trend Micro 0 0 0 0 N/A
Instructure 0 7 6 0 2.46

Instructure has a consensus price target of $46.23, suggesting a potential downside of 0.01%. Given Instructure’s higher probable upside, analysts plainly believe Instructure is more favorable than Trend Micro.

Risk and Volatility

Trend Micro has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Instructure has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Earnings and Valuation

This table compares Trend Micro and Instructure’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trend Micro $1.45 billion 4.74 $257.66 million $1.84 26.68
Instructure $209.54 million 8.00 -$43.46 million ($1.23) -37.59

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

Profitability

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

Net Margins Return on Equity Return on Assets
Trend Micro 17.65% 16.13% 8.56%
Instructure -20.74% -33.63% -15.63%

Dividends

Trend Micro pays an annual dividend of $2.46 per share and has a dividend yield of 5.0%. Instructure does not pay a dividend. Trend Micro pays out 133.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

0.2% of Trend Micro shares are owned by institutional investors. Comparatively, 90.9% of Instructure shares are owned by institutional investors. 10.4% of Instructure shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Trend Micro beats Instructure on 8 of the 15 factors compared between the two stocks.

About Trend Micro

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; and strategic partnership with Luxoft Holding, Inc. to offer intrusion detection systems and intrusion prevention systems to detect, mitigate, and respond to cyber-attacks on connected cars. The company was founded in 1988 and is headquartered in Tokyo, Japan.

About Instructure

Instructure, Inc. provides applications for learning, assessment, and performance management through a software-as-a-service business model worldwide. It develops Canvas, a learning management platform for K–12 and higher education; and Bridge, an employee development and engagement platform. The company's applications enhance academic and corporate learning by providing a system of engagement for teachers and learners, enabling frequent and open interactions, a streamlined workflow, and the creation and sharing of content with anytime, anywhere access to information. Its platform also provides data analytics that enable real-time reaction to information and benchmarking in order to personalize curricula and goal setting; and enhance the efficacy of the learning, assessment, and performance management processes. The company was founded in 2008 and is headquartered in Salt Lake City, Utah.

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