Microsoft (MSFT) versus Imperva (IMPV) Head-To-Head Comparison

Microsoft (NASDAQ:MSFT) and Imperva (NASDAQ:IMPV) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Dividends

Microsoft pays an annual dividend of $1.84 per share and has a dividend yield of 1.8%. Imperva does not pay a dividend. Microsoft pays out 47.4% of its earnings in the form of a dividend. Microsoft has raised its dividend for 14 consecutive years.

Valuation and Earnings

This table compares Microsoft and Imperva’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microsoft $110.36 billion 7.19 $16.57 billion $3.88 26.57
Imperva $321.72 million 6.11 $22.86 million ($0.28) -199.32

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

Profitability

This table compares Microsoft and Imperva’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Microsoft 16.38% 39.86% 12.78%
Imperva -8.00% -5.62% -3.29%

Insider and Institutional Ownership

72.1% of Microsoft shares are held by institutional investors. Comparatively, 94.4% of Imperva shares are held by institutional investors. 1.5% of Microsoft shares are held by company insiders. Comparatively, 1.1% of Imperva shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Microsoft and Imperva, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsoft 1 1 31 1 2.94
Imperva 0 10 4 0 2.29

Microsoft presently has a consensus price target of $122.45, suggesting a potential upside of 18.75%. Imperva has a consensus price target of $55.90, suggesting a potential upside of 0.15%. Given Microsoft’s stronger consensus rating and higher probable upside, equities analysts plainly believe Microsoft is more favorable than Imperva.

Risk & Volatility

Microsoft has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Imperva has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Summary

Microsoft beats Imperva on 15 of the 18 factors compared between the two stocks.

Microsoft Company Profile

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises. The company's Intelligent Cloud segment licenses server products and cloud services, such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform; enterprise services, including premier support and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions, as well as providing training and certification to developers and IT professionals on Microsoft products. Its More Personal Computing segment offers Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things, and MSN display advertising; devices comprising Surface, PC accessories, and other intelligent devices; Xbox hardware and software and services; and Bing and Bing Ads search advertising. The company markets and distributes its products through original equipment manufacturers, distributors, and resellers, as well as through online and Microsoft retail stores. Microsoft Corporation has collaboration with E.ON to develop smart connected home solutions. The company was founded in 1975 and is headquartered in Redmond, Washington.

Imperva Company Profile

Imperva, Inc. engages in the development, market, sale, and support of cyber security solutions that protect business critical data and applications in the cloud or on premises worldwide. The company's SecureSphere product line provides database, file, and Web application security in various data centers, including on-premises data centers, as well as in private, public, and hybrid cloud computing environments. Its SecureSphere product also secures business-critical applications and data; and provides an accelerated route to address regulatory compliance and establishes a repeatable process for data risk management. The company's Incapsula service delivers cloud-based Website security, distributed denial of service protection, and load balancing and failover; and is designed to deploy and accessible to businesses that need to optimize the security, speed, and availability of their Websites. Its products also include ThreatRadar that provides reputation and crowdsourced security intelligence services; CounterBreach, which protects enterprise data from theft and loss due to compromised, malicious, and careless users; and Imperva Camouflage Data Masking that creates functional data for development, testing, and training by disguising sensitive information while maintaining the characteristics of the original data. In addition, the company provides ongoing product support services for hardware and software; and professional and training services. Imperva, Inc. offers its products and services to banks, retailers, insurers, technology and telecommunication companies, and hospitals; and the United States and other national, state, and local government agencies through a network of distributors and resellers. The company was founded in 2002 and is headquartered in Redwood Shores, California.

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