Head to Head Contrast: Micro Focus International (NYSE:MFGP) vs. Duck Creek Technologies (NASDAQ:DCT)

Micro Focus International (NYSE:MFGPGet Rating) and Duck Creek Technologies (NASDAQ:DCTGet Rating) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

19.4% of Micro Focus International shares are held by institutional investors. Comparatively, 72.5% of Duck Creek Technologies shares are held by institutional investors. 2.9% of Duck Creek Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Micro Focus International and Duck Creek Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Micro Focus International 0 2 1 0 2.33
Duck Creek Technologies 0 2 7 0 2.78

Duck Creek Technologies has a consensus price target of $33.00, indicating a potential upside of 105.48%. Given Duck Creek Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Duck Creek Technologies is more favorable than Micro Focus International.

Earnings & Valuation

This table compares Micro Focus International and Duck Creek Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Micro Focus International $2.90 billion 0.54 -$424.40 million N/A N/A
Duck Creek Technologies $260.35 million 8.11 -$16.93 million ($0.04) -398.25

Duck Creek Technologies has lower revenue, but higher earnings than Micro Focus International.

Profitability

This table compares Micro Focus International and Duck Creek Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Micro Focus International N/A N/A N/A
Duck Creek Technologies -2.11% 1.14% 1.01%

Volatility and Risk

Micro Focus International has a beta of 2.26, meaning that its stock price is 126% more volatile than the S&P 500. Comparatively, Duck Creek Technologies has a beta of -0.43, meaning that its stock price is 143% less volatile than the S&P 500.

Summary

Duck Creek Technologies beats Micro Focus International on 9 of the 12 factors compared between the two stocks.

About Micro Focus International (Get Rating)

Micro Focus International plc operates in the enterprise software business in the United Kingdom, the United States, Germany, Canada, France, Japan, and internationally. It offers infrastructure software products that are managed on a portfolio. The company's product portfolio includes sector-agnostic products, such as application modernization and connectivity solutions that help customers to unlock the value from core business applications for modernization, which enable a transformational journey to deliver ongoing value and flexibility from IT investments, on or off the mainframe; application delivery management solutions that helps customers to increase velocity, remove bottlenecks, and deliver high-performing applications to support their digital business; and IT operations management solutions for service assurance, automate the service fulfilment life cycle, and strengthen IT service governance. It also offers CyberRes, a security solution that helps enterprises to create cyber resilience through detecting threats, securing data and applications, and protecting identities, which enables customers to adapt and evolve for the future; and information management and governance solutions that helps customers to analyze, understand, and control data to derive value and manage enterprise risk. The company was founded in 1976 and is headquartered in Newbury, the United Kingdom.

About Duck Creek Technologies (Get Rating)

Duck Creek Technologies, Inc. provides software-as-a-service core systems to the property and casualty insurance industry in the United States and internationally. The company provides Duck Creek Policy, a solution that enables insurers to develop and launch new insurance products and manage various aspects of policy administration ranging from product definition to quoting, binding, and servicing; Duck Creek Billing that provides payment and invoicing capabilities, such as billing and collections, commission processing, disbursement management, and general ledger capabilities for insurance lines and bill types; and Duck Creek Claims that supports entire claims lifecycle from first notice of loss through investigation, payments, negotiations, reporting, and closure. It also offers Duck Creek Rating that allows carriers to develop new rates and models and deliver quotes in real-time based on the complex rating algorithms; Duck Creek Insights, an insurance analytics solution that allows carriers to gather and analyze data from internal and external sources and facilitate analysis and reporting on a single system; Duck Creek Digital Engagement that offer digital interactions between property and casualty insurers and their agents, brokers, and policyholders; and Duck Creek Distribution Management that automates sales channel activities for agents and brokers, including producer onboarding, compliance, and compensation management. In addition, the company provides Duck Creek Reinsurance Management that automates financial and administrative functions; and Duck Creek Industry Content that provides pre-built content, including base business rules, product designs, rating algorithms, data capture screens, and workflows for insurance lines of business, such as commercial auto, inland marine, and workers compensation. It has a partnership with Shift Technologies, Inc. to implement AI fraud detection. The company was founded in 2016 and is based in Boston, Massachusetts.

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