Brightcove (BCOV) and Fair Isaac Corporation (FICO) Critical Comparison

Brightcove (NASDAQ: BCOV) and Fair Isaac Corporation (NYSE:FICO) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Brightcove and Fair Isaac Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brightcove 0 1 2 0 2.67
Fair Isaac Corporation 0 1 1 0 2.50

Brightcove presently has a consensus target price of $8.42, suggesting a potential upside of 14.51%. Fair Isaac Corporation has a consensus target price of $150.00, suggesting a potential downside of 3.03%. Given Brightcove’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Brightcove is more favorable than Fair Isaac Corporation.

Profitability

This table compares Brightcove and Fair Isaac Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brightcove -14.58% -25.11% -13.88%
Fair Isaac Corporation 13.76% 30.03% 10.29%

Dividends

Fair Isaac Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Brightcove does not pay a dividend. Fair Isaac Corporation pays out 1.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Brightcove and Fair Isaac Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Brightcove $150.27 million 1.69 -$9.98 million ($0.66) -11.14
Fair Isaac Corporation $932.16 million 4.98 $128.25 million $3.97 38.96

Fair Isaac Corporation has higher revenue and earnings than Brightcove. Brightcove is trading at a lower price-to-earnings ratio than Fair Isaac Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

60.6% of Brightcove shares are owned by institutional investors. Comparatively, 87.9% of Fair Isaac Corporation shares are owned by institutional investors. 4.4% of Brightcove shares are owned by company insiders. Comparatively, 5.6% of Fair Isaac Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Brightcove has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, Fair Isaac Corporation has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Summary

Fair Isaac Corporation beats Brightcove on 10 of the 15 factors compared between the two stocks.

Brightcove Company Profile

Brightcove Inc. is a global provider of cloud-based services for video. The Company’s products and services include Brightcove Video Cloud (Video Cloud), Brightcove Zencoder (Zencoder), Brightcove Once (Once), Brightcove Perform (Perform), Brightcove Video Marketing Suite (Video Marketing Suite), Brightcove Lift (Lift), Brightcove OTT Flow (OTT Flow) and Brightcove Enterprise Video Suite (Enterprise Video Suite), among others. Video Cloud is an online video platform. Video Cloud enables its customers to publish and distribute video to Internet-connected devices. Zencoder is a cloud-based video encoding service. Once is a cloud-based advertisement insertion and video stitching service. Perform is a cloud-based service for creating and managing video player experiences. Video Marketing Suite is a suite of video technologies designed to address the needs of marketers to drive awareness, engagement and conversion.

Fair Isaac Corporation Company Profile

Fair Isaac Corporation (FICO) is a provider of analytic, software and data management products and services that enable businesses to automate and connect decisions. The Company operates through three segments: Applications, Scores and Decision Management Software. The Applications segment includes pre-configured decision management applications designed for a specific type of business problem or process, such as marketing, account origination, customer management, fraud, collections and insurance claims management. The Scores segment includes business-to-business scoring solutions and services, business-to-consumer scoring solutions and services, including myFICO solutions for consumers. The Decision Management Software segment consists of analytic and decision management software tools that clients can use to create their own custom decision management applications, its new FICO Decision Management Suite, as well as associated professional services.

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