Analyzing TechTarget (NASDAQ:TTGT) and MSCI (NYSE:MSCI)

TechTarget (NASDAQ:TTGTGet Rating) and MSCI (NYSE:MSCIGet Rating) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TechTarget $263.43 million 8.12 $950,000.00 $0.17 425.59
MSCI $2.04 billion 17.44 $725.98 million $9.12 48.08

MSCI has higher revenue and earnings 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.

Analyst Ratings

This is a summary of current recommendations and price targets for TechTarget and MSCI, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TechTarget 0 1 5 0 2.83
MSCI 0 3 5 0 2.63

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

Insider and Institutional Ownership

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

Profitability

This table compares TechTarget and MSCI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TechTarget 2.26% 21.03% 7.06%
MSCI 35.65% -205.88% 17.29%

Risk & Volatility

TechTarget has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, MSCI has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Summary

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

About TechTarget (Get Rating)

TechTarget, Inc., together with its subsidiaries, provides marketing and sales services that deliver business impact for business-to-business technology companies in North America and internationally. It also provides purchase-intent marketing and sales services for enterprise technology vendors; and customized marketing programs that integrate 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; demand solutions, such as white papers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; brand solutions comprise on-network, off-network, and microsites and related formats branding; custom content creation services; and BrightTALK platform that 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. In addition, the company enables registered members to conduct their pre-purchase research by accessing vendor supplied content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.

About MSCI (Get Rating)

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

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