Head-To-Head Survey: Intuit (NASDAQ:INTU) and PTC (NASDAQ:PTC)

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

Insider and Institutional Ownership

83.7% of Intuit shares are owned by institutional investors. Comparatively, 95.1% of PTC shares are owned by institutional investors. 2.5% of Intuit shares are owned by insiders. Comparatively, 0.3% of PTC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Intuit has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, PTC has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Intuit and PTC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intuit	1	4	23	1	2.83
PTC	0	5	12	0	2.71

Intuit presently has a consensus target price of $796.60, suggesting a potential upside of 18.41%. PTC has a consensus target price of $205.92, suggesting a potential upside of 17.28%. Given Intuit’s stronger consensus rating and higher probable upside, research analysts clearly believe Intuit is more favorable than PTC.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intuit	21.19%	23.52%	13.10%
PTC	27.05%	23.02%	12.81%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intuit	$18.83 billion	9.94	$3.87 billion	$14.63	45.99
PTC	$2.74 billion	7.62	$741.03 million	$6.14	28.60

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

Summary

Intuit beats PTC on 13 of the 15 factors compared between the two stocks.

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.

About PTC

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.