Tyler Technologies (NYSE:TYL – Get Rating) and Trend Micro (OTCMKTS:TMICY – Get Rating) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Volatility and Risk
Tyler Technologies has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Earnings and Valuation
This table compares Tyler Technologies and Trend Micro’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tyler Technologies | $1.85 billion | 8.46 | $164.24 million | $3.87 | 96.48 |
| Trend Micro | $1.71 billion | 4.12 | $229.79 million | $1.65 | 30.38 |
Insider and Institutional Ownership
89.5% of Tyler Technologies shares are owned by institutional investors. Comparatively, 0.0% of Trend Micro shares are owned by institutional investors. 2.2% of Tyler Technologies 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.
Profitability
This table compares Tyler Technologies and Trend Micro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tyler Technologies | 8.88% | 9.61% | 5.10% |
| Trend Micro | 13.52% | 10.10% | 4.96% |
Analyst Recommendations
This is a summary of current ratings and target prices for Tyler Technologies and Trend Micro, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tyler Technologies | 0 | 2 | 8 | 0 | 2.80 |
| Trend Micro | 1 | 1 | 0 | 0 | 1.50 |
Tyler Technologies currently has a consensus target price of $436.58, suggesting a potential upside of 16.92%. Given Tyler Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Tyler Technologies is more favorable than Trend Micro.
Summary
Tyler Technologies beats Trend Micro on 11 of the 14 factors compared between the two stocks.
About Tyler Technologies
Tyler Technologies, Inc. engages in the provision of integrated technology and management solutions and services for the public sector with a focus on local governments. It operates through the following segments: Enterprise Software and Appraisal and Tax. The Enterprise Software segment provides municipal and county governments and schools with software systems to meet their information technology and automation needs for mission-critical back-office functions such as financial management, courts and justice processes. The Appraisal and Tax segment provides systems and software that automate the appraisal and assessment of real and personal property, as well as property appraisal outsourcing services for local governments and taxing authorities. The company was founded in 1966 and is headquartered in Plano, TX.
About Trend Micro
Trend Micro, Inc. is engaged in the development and sale of security-related products and services for computers and the Internet. It operates through the following geographical segments: Japan, North America, Europe, Asia Pacific, and Central and Latin America. The company enterprises the data security and cyber security solutions for businesses, data centers, cloud environments, networks and others. Its products include security software for home & offices, small businesses, data center & cloud, network & web, mobile devices, personal computer (PC) client products, local area network (LAN) server products, Internet server & integrated products, and others. The company was founded by Eva Chen, Steve Chang and Jenny Chang in August 1988 and is headquartered in Tokyo, Japan.
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