Trend Micro (OTCMKTS:TMICY) vs. Porch Group (NASDAQ:PRCH) Critical Comparison

Porch Group (NASDAQ:PRCH) and Trend Micro (OTCMKTS:TMICY) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Porch Group and Trend Micro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Porch Group	0	1	5	1	3.00
Trend Micro	0	0	0	0	0.00

Porch Group presently has a consensus target price of $4.18, indicating a potential upside of 10.84%. Given Porch Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Porch Group is more favorable than Trend Micro.

Insider & Institutional Ownership

48.5% of Porch Group shares are held by institutional investors. Comparatively, 0.0% of Trend Micro shares are held by institutional investors. 23.5% of Porch Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Porch Group has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Porch Group	-14.55%	N/A	-10.57%
Trend Micro	9.06%	19.06%	6.57%

Earnings & Valuation

This table compares Porch Group and Trend Micro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Porch Group	$452.10 million	1.00	-$133.93 million	($0.70)	-5.39
Trend Micro	$1.77 billion	4.42	$76.20 million	$1.21	46.01

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

Summary

Trend Micro beats Porch Group on 8 of the 15 factors compared between the two stocks.

About Porch Group

Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.

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.