MicroStrategy (NASDAQ:MSTR – Get Free Report) and Zuora (NYSE:ZUO – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Volatility and Risk
MicroStrategy has a beta of 3.17, meaning that its share price is 217% more volatile than the S&P 500. Comparatively, Zuora has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.
Institutional & Insider Ownership
59.8% of MicroStrategy shares are owned by institutional investors. Comparatively, 83.0% of Zuora shares are owned by institutional investors. 13.2% of MicroStrategy shares are owned by company insiders. Comparatively, 8.6% of Zuora shares are owned 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MicroStrategy | 0 | 0 | 8 | 0 | 3.00 |
| Zuora | 0 | 5 | 2 | 0 | 2.29 |
MicroStrategy currently has a consensus price target of $479.25, indicating a potential upside of 33.80%. Zuora has a consensus price target of $11.43, indicating a potential upside of 15.21%. Given MicroStrategy’s stronger consensus rating and higher possible upside, equities analysts plainly believe MicroStrategy is more favorable than Zuora.
Profitability
This table compares MicroStrategy and Zuora’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MicroStrategy | -87.05% | -17.31% | -7.29% |
| Zuora | -16.34% | -2.99% | -0.58% |
Valuation and Earnings
This table compares MicroStrategy and Zuora”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MicroStrategy | $467.24 million | 183.71 | $429.12 million | ($2.11) | -169.75 |
| Zuora | $452.76 million | 3.37 | -$68.19 million | ($0.49) | -20.24 |
MicroStrategy has higher revenue and earnings than Zuora. MicroStrategy is trading at a lower price-to-earnings ratio than Zuora, indicating that it is currently the more affordable of the two stocks.
Summary
MicroStrategy beats Zuora on 8 of the 14 factors compared between the two stocks.
About MicroStrategy
MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions. The company also provides MicroStrategy Support that helps customers achieve their system availability and usage goals through highly responsive troubleshooting and assistance; MicroStrategy Consulting, which provides architecture and implementation services to help customers realize their desired results; and MicroStrategy Education that offers free and paid learning options. In addition, it engages in the development of bitcoin. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.
About Zuora
Zuora, Inc. provides a monetization suite for modern businesses to help companies launch and scale new services and operate dynamic customer-centric business models. The company offers Zuora Billing that allows customers to deploy various pricing and packaging strategies to monetize their recurring revenue streams, bill customers, calculate prorations when subscriptions change, and automate billing and payment operations; Zuora Revenue, a revenue recognition and automation solution that accounting teams use to manage their complex revenue streams; Zuora Payments to provide payment orchestration services for companies looking to operate globally; and Zephr, a digital subscriber experience platform that helps companies orchestrate dynamic experiences that increase conversion, reduce churn, and nurture ongoing subscriber relationships. It also provides Zuora Platform, an orchestration engine for all subscription data and processes; and other software. The company markets its products through its systems integrators, consultants, and ecosystem partners. Zuora, Inc. was incorporated in 2006 and is headquartered in Redwood City, California.
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