Head-To-Head Review: Fair Isaac (NYSE:FICO) vs. Adeia (NASDAQ:ADEA)

Fair Isaac (NYSE:FICO) and Adeia (NASDAQ:ADEA) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Fair Isaac and Adeia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fair Isaac	1	6	10	0	2.53
Adeia	0	2	4	0	2.67

Fair Isaac currently has a consensus target price of $1,210.38, indicating a potential upside of 75.42%. Adeia has a consensus target price of $37.60, indicating a potential upside of 44.23%. Given Fair Isaac’s higher possible upside, analysts plainly believe Fair Isaac is more favorable than Adeia.

Profitability

This table compares Fair Isaac and Adeia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fair Isaac	34.05%	-32.51%	40.61%
Adeia	26.05%	39.26%	17.50%

Dividends

Fair Isaac pays an annual dividend of $0.08 per share and has a dividend yield of 0.0%. Adeia pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Fair Isaac pays out 0.2% of its earnings in the form of a dividend. Adeia pays out 18.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk & Volatility

Fair Isaac has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Adeia has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Earnings and Valuation

This table compares Fair Isaac and Adeia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fair Isaac	$2.39 billion	6.23	$651.95 million	$34.62	19.93
Adeia	$443.39 million	6.48	$111.07 million	$1.08	24.14

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

Insider & Institutional Ownership

85.8% of Fair Isaac shares are held by institutional investors. Comparatively, 97.4% of Adeia shares are held by institutional investors. 3.0% of Fair Isaac shares are held by company insiders. Comparatively, 2.0% of Adeia shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Fair Isaac beats Adeia on 9 of the 15 factors compared between the two stocks.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.

About Adeia

Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, California.