Financial analysis: MSCI (NYSE: MSCI) and TechTarget (NASDAQ: TTGT)


MSCI (NYSE:MSCI – Get Rating) and TechTarget (NASDAQ:TTGT – Get Rating) are both IT and technology companies, but which is the better stock? We’ll compare the two companies based on their dividend strength, analyst recommendations, profitability, risk, earnings, valuation, and institutional ownership.

Volatility and risk

MSCI has a beta of 1.07, which suggests its stock price is 7% more volatile than the S&P 500. In comparison, TechTarget has a beta of 1.04, which suggests its stock price is 4% more volatile than the S&P 500.

Valuation and benefits

This table compares gross revenue, earnings per share (EPS), and valuation of MSCI and TechTarget.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
MSCI $2.04 billion 5:44 p.m. $725.98 million $9.12 48.08
TechTarget $263.43 million 8.12 $950,000.00 $0.17 425.59

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

Insider and Institutional Ownership

90.8% of MSCI shares are held by institutional investors. Comparatively, 99.8% of TechTarget shares are held by institutional investors. 3.0% of MSCI shares are held by insiders of the company. Comparatively, 10.5% of TechTarget shares are held by company insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares the net margins, return on equity, and return on assets of MSCI and TechTarget.

Net margins Return on equity return on assets
MSCI 35.65% -205.88% 17.29%
TechTarget 2.26% 21.03% 7.06%

Analyst Recommendations

This is a breakdown of recent ratings and recommendations for MSCI and TechTarget, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
MSCI 0 3 5 0 2.63
TechTarget 0 1 5 0 2.83

MSCI currently has a consensus price target of $558.57, indicating a potential upside of 27.40%. TechTarget has a consensus price target of $100.83, indicating a potential upside of 39.37%. Given TechTarget’s stronger consensus rating and higher likely upside, analysts clearly think TechTarget is more favorable than MSCI.

Summary

MSCI beats TechTarget on 7 out of 13 factors compared between the two stocks.

MSCI Company Profile (Get a rating)

MSCI Inc., together with its subsidiaries, provides investment decision support tools for clients to manage their investment processes worldwide. It operates through four segments: Index, Analytics, ESG and Climate, and All Others – Private Assets. The Index segment provides indices for use in various areas of the investment process, including the creation of indexed products, such as ETFs, mutual funds, annuities, futures, options, structured products , OTC derivatives; performance benchmarking; portfolio construction and rebalancing; and asset allocation, as well as GICS and GICS Direct licensing. The Analytics segment offers risk management, performance attribution and portfolio management content, application and service that provides an integrated view of risk and return, as well as analysis of market risk, credit , liquidity and counterparty in all asset classes; managed services, including consolidation of client portfolio data from various sources, review and reconciliation of input data and results, and custom reporting; and HedgePlatform to measure, assess and monitor the risk of hedge fund investments. The ESG and Climate segment provides products and services that help institutional investors understand the impact of ESG factors on the long-term risk and return of their portfolio and individual security investments; and data, ratings, research and tools to help investors navigate increasing regulation. The All Others – Private Assets segment includes real estate market and transaction data, benchmarks, performance analysis, climate assessments and market information for funds, investors and managers; business information for owners, managers, developers and real estate brokers; and offers investment decision support tools for private capital. It serves asset owners and managers, financial intermediaries, wealth managers, real estate professionals and businesses. MSCI Inc. was incorporated in 1998 and is headquartered in New York, New York.

TechTarget Company Profile (Get a rating)

TechTarget, Inc., together with its subsidiaries, provides business-impacting marketing and sales services for business-to-business technology companies in North America and internationally. It also provides intent-to-purchase marketing and sales services for enterprise technology vendors; and tailored marketing programs that incorporate demand generation, brand advertising techniques, and content curation and creation. The Company offers online services, including IT Deal Alert, including Priority Engine, Qualified Sales Opportunities, Deal Data Services; on-demand solutions, such as whitepapers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; branding solutions include on-net, off-net, and microsite branding and related formats; custom content creation services; and the BrightTALK platform which allows customers to create, host and promote webinars, virtual events and video content. It also operates an integrated content platform that consists of a network of approximately 150 websites and 1,080 webinars and virtual event channels that focus on a specific IT sector, such as storage, security or networking. Additionally, the Company enables registered members to conduct their pre-purchase research by accessing vendor-provided content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.



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Sarah J. Greer