Analyzing HubSpot (HUBS) & ANSYS (ANSS)

HubSpot (NYSE:HUBS) and ANSYS (NASDAQ:ANSS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Risk & Volatility

HubSpot has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500. Comparatively, ANSYS has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares HubSpot and ANSYS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HubSpot	-12.44%	-17.08%	-5.04%
ANSYS	27.00%	15.33%	12.39%

Analyst Ratings

This is a breakdown of recent ratings and price targets for HubSpot and ANSYS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HubSpot	0	8	10	0	2.56
ANSYS	1	4	10	0	2.60

HubSpot currently has a consensus target price of $169.75, indicating a potential downside of 1.26%. ANSYS has a consensus target price of $179.92, indicating a potential downside of 1.27%. Given HubSpot’s higher probable upside, equities research analysts clearly believe HubSpot is more favorable than ANSYS.

Valuation & Earnings

This table compares HubSpot and ANSYS’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HubSpot	$512.98 million	13.27	-$63.82 million	($1.02)	-168.55
ANSYS	$1.10 billion	13.90	$259.25 million	$5.21	34.98

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

Insider and Institutional Ownership

95.0% of HubSpot shares are held by institutional investors. Comparatively, 92.8% of ANSYS shares are held by institutional investors. 9.6% of HubSpot shares are held by insiders. Comparatively, 1.1% of ANSYS shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

ANSYS beats HubSpot on 9 of the 13 factors compared between the two stocks.

HubSpot Company Profile

HubSpot, Inc. provides a cloud-based marketing and sales software platform for businesses in the Americas, Europe, and the Asia Pacific. Its software platform includes integrated applications, such as social media, search engine optimization, blogging, Website content management, marketing automation, email, sales productivity, CRM, analytics, and reporting. The company also offers professional, and phone and email-based support services. It serves mid-market business-to-business, and B2B companies. The company markets its product through inbound go-to-market approach, marketing agency, and sales partners. HubSpot, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

ANSYS Company Profile

ANSYS, Inc. develops and markets engineering simulation software and services worldwide. The company offers ANSYS Workbench, a framework upon which the company’s engineering simulation technologies are built; ANSYS multiphysics software to simulate the interactions between structures, heat transfer, fluids, and electronics in a unified engineering simulation environment; and structural analysis product suite that provides simulation tools for product design and optimization. It also provides fluids product suite that enables modeling of fluid flow and other related physical phenomena; electronics product suite, which provides field simulation software for designing electronic and electromechanical products; and power analysis and optimization software suite. In addition, the company offers power analysis and optimization software suite that manages the power budget, power delivery integrity, and power-induced noise in an electronic design; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; system simulation capability for the design of automated products; and high-performance computing product suite, which delivers cross-physics parallel processing capabilities for simulation software. Further, it provides Discovery product family for use in the simulation of product design; academic product suite with a portfolio of academic products based on associate, research, and teaching; ANSYS medini analyze, a suite for functional safety analysis; and ANSYS Fluent that automatically refines the mesh. The company serves engineers, designers, researchers, and students in the aerospace and defense, automotive, electronics, semiconductors, energy, materials and chemical processing, turbomachinery, consumer products, healthcare, and sports industries and academia. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

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