Analyzing BlackLine (NASDAQ:BL) and Trend Micro (OTCMKTS:TMICY)

BlackLine (NASDAQ:BL) and Trend Micro (OTCMKTS:TMICY) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Volatility & Risk

BlackLine has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for BlackLine and Trend Micro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackLine	2	6	4	0	2.17
Trend Micro	0	0	0	0	0.00

BlackLine presently has a consensus price target of $64.10, indicating a potential upside of 2.91%. Given BlackLine’s stronger consensus rating and higher probable upside, equities analysts plainly believe BlackLine is more favorable than Trend Micro.

Institutional and Insider Ownership

95.1% of BlackLine shares are owned by institutional investors. Comparatively, 0.0% of Trend Micro shares are owned by institutional investors. 9.9% of BlackLine shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares BlackLine and Trend Micro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackLine	19.83%	31.02%	4.92%
Trend Micro	9.06%	19.06%	6.57%

Valuation and Earnings

This table compares BlackLine and Trend Micro”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackLine	$639.61 million	6.09	$58.17 million	$0.98	63.56
Trend Micro	$1.77 billion	4.12	$76.20 million	$1.21	42.83

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

Summary

BlackLine beats Trend Micro on 10 of the 14 factors compared between the two stocks.

About BlackLine

BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles individual transactions; task management to create and manage processes and task lists; and financial reporting analytics that enables analysis and validation of financial data. The company's also provides journal entry that allows users to generate, review, and post manual journal entries; variance analysis that monitors and identifies anomalous fluctuations in balance sheet and income statement account balances; consolidation integrity manager that manages the automated system-to-system tie-out process; compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing; and smart close for SAP solution. In addition, it offers blackline cash application, and credit and risk, collections, disputes and deductions, and team and task management, as well as AR intelligence solutions and electronic invoicing and compliance. Further, the company provides intercompany create functionality that stores permissions and business logic exceptions by entity, service, and transaction type; intercompany balance and resolve, which records an organization's intercompany transactions; and netting and settlement that enables open intercompany transactions, which integrate with treasury systems. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. BlackLine, Inc. was incorporated in 2001 and is headquartered in Woodland Hills, California.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.