Stem (NYSE:STEM – Get Free Report) and Trend Micro (OTCMKTS:TMICY – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Risk & Volatility
Stem has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Stem and Trend Micro, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stem | 1 | 3 | 1 | 0 | 2.00 |
| Trend Micro | 1 | 0 | 0 | 1 | 2.50 |
Valuation & Earnings
This table compares Stem and Trend Micro”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stem | $156.27 million | 0.26 | $137.76 million | ($8.49) | -0.50 |
| Trend Micro | $1.85 billion | 3.05 | $231.30 million | $1.76 | 24.52 |
Trend Micro has higher revenue and earnings than Stem. Stem is trading at a lower price-to-earnings ratio than Trend Micro, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Stem and Trend Micro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stem | -49.37% | N/A | -21.85% |
| Trend Micro | 12.30% | 28.58% | 8.73% |
Institutional and Insider Ownership
61.6% of Stem shares are owned by institutional investors. Comparatively, 0.1% of Trend Micro shares are owned by institutional investors. 5.1% of Stem shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Trend Micro beats Stem on 10 of the 15 factors compared between the two stocks.
About Stem
Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.
About Trend Micro
Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.
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