Financial Comparison: Materialise (MTLS) and Tyler Technologies (TYL)

Materialise (NASDAQ:MTLS) and Tyler Technologies (NYSE:TYL) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Materialise and Tyler Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Materialise 0 1 1 0 2.50
Tyler Technologies 0 3 5 0 2.63

Materialise presently has a consensus target price of $19.54, indicating a potential upside of 17.68%. Tyler Technologies has a consensus target price of $237.29, indicating a potential upside of 8.70%. Given Materialise’s higher possible upside, equities research analysts clearly believe Materialise is more favorable than Tyler Technologies.

Profitability

This table compares Materialise and Tyler Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Materialise 1.56% 2.39% 0.97%
Tyler Technologies 14.23% 11.28% 8.38%

Risk & Volatility

Materialise has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares Materialise and Tyler Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Materialise $218.16 million 3.60 $3.58 million $0.07 237.14
Tyler Technologies $935.28 million 8.95 $147.46 million $3.74 58.37

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

Institutional & Insider Ownership

22.9% of Materialise shares are owned by institutional investors. Comparatively, 90.7% of Tyler Technologies shares are owned by institutional investors. 4.4% of Tyler Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Tyler Technologies beats Materialise on 12 of the 14 factors compared between the two stocks.

Materialise Company Profile

Materialise NV provides additive manufacturing software and 3D printing services in Europe, the Americas, Africa, and the Asia-Pacific. The company's Materialise Software segment offers proprietary software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design packages and 3D scanners. This segment serves 3D printing machine original equipment manufacturers; manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third-party distributors. Its Materialise Medical segment provides medical software that allows medical-image based analysis and engineering, as well as patient-specific design of surgical devices and implants to research institutes, hospitals, and medical device companies; and clinical services. This segment has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Global Orthopaedic Technology Pty Ltd; Limacorporate Spa; Mathys AG; Howmedica Osteonics Corp.; and Corin Ltd. It serves medical device companies, hospitals, universities, and industrial companies through its direct sales force, Website, and picture archiving and communication system partners. The company's Materialise Manufacturing segment primarily offers 3D printing services to industrial and commercial customers. It provides design and engineering services, and rapid prototyping and additive manufacturing of production parts; and engineers and 3D prints fixtures that allow automobile manufacturers and their suppliers to enhance the quality control and efficiency of their manufacturing processes. The company was founded in 1990 and is headquartered in Leuven, Belgium.

Tyler Technologies Company Profile

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector in the United States and internationally. The company operates in two segments, Enterprise Software, and Appraisal and Tax. It offers financial management solutions, including modular fund accounting systems for government agencies or not-for-profit entities; utility billing systems for the billing and collection of metered and non-metered services; products to automate city and county functions, such as municipal courts, parking tickets, equipment and project costing, animal and business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management; and student information and transportation solutions for K-12 schools. The company also provides a suite of judicial solutions comprising court case management, court and law enforcement, prosecutor, and supervision systems to handle multi-jurisdictional county or statewide implementations, and single county systems; public safety software solutions; systems and software to automate the appraisal and assessment of real and personal property, as well as tax applications for agencies that bill and collect taxes; planning, regulatory, and maintenance software solutions for public sector agencies; software applications to enhance and automate land and other records and document management; and data and insights solutions. In addition, it offers software as a service arrangements and electronic document filing solutions for courts and law offices; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. The company was founded in 1966 and is based in Plano, Texas.

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