Analyzing Tyler Technologies (NYSE:TYL) and MongoDB (NASDAQ:MDB)

MongoDB (NASDAQ:MDB) and Tyler Technologies (NYSE:TYL) are both large-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for MongoDB and Tyler Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MongoDB	0	7	29	2	2.87
Tyler Technologies	0	4	12	1	2.82

MongoDB currently has a consensus price target of $461.91, suggesting a potential upside of 24.47%. Tyler Technologies has a consensus price target of $453.89, suggesting a potential upside of 16.29%. Given MongoDB’s stronger consensus rating and higher possible upside, equities research analysts clearly believe MongoDB is more favorable than Tyler Technologies.

Earnings & Valuation

This table compares MongoDB and Tyler Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MongoDB	$2.46 billion	12.13	-$71.15 million	$0.71	522.66
Tyler Technologies	$2.33 billion	6.85	$315.60 million	$7.54	51.76

Tyler Technologies has lower revenue, but higher earnings than MongoDB. Tyler Technologies is trading at a lower price-to-earnings ratio than MongoDB, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

89.3% of MongoDB shares are owned by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are owned by institutional investors. 2.6% of MongoDB shares are owned by insiders. Comparatively, 1.1% of Tyler Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares MongoDB and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MongoDB	2.12%	1.06%	0.84%
Tyler Technologies	13.36%	11.15%	7.14%

Risk and Volatility

MongoDB has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Summary

MongoDB beats Tyler Technologies on 9 of the 15 factors compared between the two stocks.

About MongoDB

MongoDB, Inc., together with its subsidiaries, provides general purpose database platform worldwide. The company provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premises, or in a hybrid environment; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It offers professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.