MINDBODY (MB) and Splunk (SPLK) Critical Comparison

Splunk (NASDAQ: SPLK) and MINDBODY (NASDAQ:MB) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Volatility and Risk

Splunk has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500. Comparatively, MINDBODY has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500.

Institutional & Insider Ownership

90.2% of MINDBODY shares are held by institutional investors. 1.4% of Splunk shares are held by insiders. Comparatively, 8.2% of MINDBODY shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Splunk and MINDBODY, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Splunk 0 8 26 0 2.76
MINDBODY 0 2 8 0 2.80

Splunk presently has a consensus target price of $82.53, indicating a potential upside of 2.95%. MINDBODY has a consensus target price of $32.15, indicating a potential upside of 5.24%. Given MINDBODY’s stronger consensus rating and higher probable upside, analysts clearly believe MINDBODY is more favorable than Splunk.

Profitability

This table compares Splunk and MINDBODY’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Splunk -32.72% -72.06% -32.67%
MINDBODY -9.26% -8.39% -6.68%

Earnings & Valuation

This table compares Splunk and MINDBODY’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Splunk $949.96 million 11.94 -$355.18 million ($4.34) -18.47
MINDBODY $139.02 million 10.26 -$22.97 million ($0.38) -80.39

MINDBODY has lower revenue, but higher earnings than Splunk. MINDBODY is trading at a lower price-to-earnings ratio than Splunk, indicating that it is currently the more affordable of the two stocks.

Summary

MINDBODY beats Splunk on 9 of the 13 factors compared between the two stocks.

About Splunk

Splunk Inc. (Splunk) is engaged in the development and marketing of software solutions. The Company’s offerings enable users to collect, index, search, explore, monitor and analyze data. Its offerings address diverse data sets that are referred to as big data and are specifically used for machine data. Machine data is produced by various software application and electronic devices in an organization and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Its products help users in various roles, including information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility into and intelligence about their organization’s operations. In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats. The Company offers Splunk Enterprise, which is a machine data platform.

About MINDBODY

MINDBODY, Inc. is a provider of cloud-based business management software for the wellness services industry and operates as a consumer marketplace with local business subscribers on its platform. The Company’s subscribers provide a range of wellness services to active consumers. Its integrated software and payments platform helps business owners in the wellness services industry run, market and build their businesses. It also helps consumers discover, evaluate, engage and transact with these businesses through the Web and mobile devices. The platform addresses various aspects of operating a wellness business, including client scheduling and online booking; retail point-of-sale; analytics and reporting; user experience; mobility; social integration; dynamic cloud-based architecture; open platform for third-party application development; integration with other cloud-based partners, and security and compliance.

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