Comparing Stem (NYSE:STEM) and Trend Micro (OTCMKTS:TMICY)

Trend Micro (OTCMKTS:TMICY) and Stem (NYSE:STEM) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Risk and Volatility

Trend Micro has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Stem has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of Trend Micro shares are owned by institutional investors. Comparatively, 61.6% of Stem shares are owned by institutional investors. 5.1% of Stem shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trend Micro	$1.85 billion	2.91	$231.30 million	$1.76	23.39
Stem	$156.27 million	0.29	$137.76 million	($8.49)	-0.55

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trend Micro	12.30%	28.58%	8.73%
Stem	-49.37%	N/A	-21.85%

Analyst Recommendations

This is a summary of current ratings and target prices for Trend Micro and Stem, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trend Micro	1	0	0	1	2.50
Stem	1	3	1	0	2.00

Stem has a consensus target price of $7.45, suggesting a potential upside of 60.77%. Given Stem’s higher probable upside, analysts clearly believe Stem is more favorable than Trend Micro.

Summary

Trend Micro beats Stem on 10 of the 15 factors compared between the two stocks.

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.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.