Analyzing Dassault Systemes (OTCMKTS:DASTY) and Intuit (NASDAQ:INTU)

Dassault Systemes (OTCMKTS:DASTY) and Intuit (NASDAQ:INTU) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dassault Systemes and Intuit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dassault Systemes	0	1	0	2	3.33
Intuit	1	4	20	1	2.81

Intuit has a consensus target price of $791.82, suggesting a potential upside of 15.95%. Given Intuit’s higher probable upside, analysts clearly believe Intuit is more favorable than Dassault Systemes.

Dividends

Dassault Systemes pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. Intuit pays an annual dividend of $4.16 per share and has a dividend yield of 0.6%. Dassault Systemes pays out 23.9% of its earnings in the form of a dividend. Intuit pays out 30.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Intuit has increased its dividend for 13 consecutive years. Dassault Systemes is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Dassault Systemes and Intuit”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dassault Systemes	$6.72 billion	6.67	$1.30 billion	$0.92	36.38
Intuit	$18.83 billion	10.11	$3.87 billion	$13.74	49.70

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

Profitability

This table compares Dassault Systemes and Intuit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dassault Systemes	17.93%	16.91%	9.76%
Intuit	20.55%	22.72%	12.46%

Volatility and Risk

Dassault Systemes has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Intuit has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Dassault Systemes shares are owned by institutional investors. Comparatively, 83.7% of Intuit shares are owned by institutional investors. 2.7% of Intuit shares are owned 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.

Summary

Intuit beats Dassault Systemes on 14 of the 18 factors compared between the two stocks.

About Dassault Systemes

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.

About Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.