Contrasting Insight Enterprises (NASDAQ:NSIT) and Badger Meter (NYSE:BMI)

Insight Enterprises (NASDAQ:NSIT) and Badger Meter (NYSE:BMI) are both mid-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Valuation & Earnings

This table compares Insight Enterprises and Badger Meter”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insight Enterprises	$8.25 billion	0.55	$157.35 million	$6.83	22.68
Badger Meter	$916.66 million	4.21	$141.63 million	$4.28	31.07

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

Institutional and Insider Ownership

89.0% of Badger Meter shares are owned by institutional investors. 1.2% of Insight Enterprises shares are owned by insiders. Comparatively, 1.0% of Badger Meter shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Insight Enterprises and Badger Meter, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insight Enterprises	0	3	3	1	2.71
Badger Meter	1	5	6	0	2.42

Insight Enterprises presently has a consensus target price of $147.50, suggesting a potential downside of 4.78%. Badger Meter has a consensus target price of $162.00, suggesting a potential upside of 21.84%. Given Badger Meter’s higher probable upside, analysts clearly believe Badger Meter is more favorable than Insight Enterprises.

Profitability

This table compares Insight Enterprises and Badger Meter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insight Enterprises	2.45%	22.70%	3.71%
Badger Meter	14.27%	18.03%	12.82%

Risk and Volatility

Insight Enterprises has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Badger Meter has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Summary

Insight Enterprises beats Badger Meter on 8 of the 15 factors compared between the two stocks.

About Insight Enterprises

Insight Enterprises, Inc., together with its subsidiaries, provides information technology, hardware, software, and services in the United States and internationally. The company offers modern platforms/infrastructure that manages and supports cloud and data platforms, modern networks, and edge technologies; cybersecurity solutions automates and connects modern platform securely; data and artificial intelligence modernizes data platforms and architectures, and build data analytics and AI solutions; modern workplace and apps; and intelligent edge solutions that gathers and utilizes data for real-time decision making. It also provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services contracts; and cloud/software-as-a-service subscription products. In addition, the company designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses. It serves construction, esports, financial services, health care and life sciences, manufacturing, retail and restaurant, service providers, small to medium business, and travel and tourism industries. Insight Enterprises, Inc., was founded in 1988 and is headquartered in Chandler, Arizona.

About Badger Meter

Badger Meter, Inc. manufactures and markets flow measurement, quality, control, and communication solutions worldwide. It offers mechanical or static water meters, and related radio and software technologies and services to municipal water utilities market. The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives. In addition, the company offers ORION Cellular endpoints to power network as a service; ORION mobile read endpoints support for deploying AMR solution; radio products; hardware, instruments, and sensors, and related software, to enhance connected data to a water utility's operation; water quality monitoring solutions, including optical sensing and electrochemical instruments; and high frequency pressure and leak detection sensors to aid in burst pipe and leak events; as well as BEACON, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water customers to view and manage their water usage activity. Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets. The company serves water utilities, commercial, and industrial industries; and provides training, project management, technical support, and other collaborative services for customers. It sells its products and software directly, as well as through resellers and representatives. The company was incorporated in 1905 and is based in Milwaukee, Wisconsin.