Critical Survey: Asure Software (NASDAQ:ASUR) and Jacobs Solutions (NYSE:J)

Jacobs Solutions (NYSE:J) and Asure Software (NASDAQ:ASUR) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Volatility & Risk

Jacobs Solutions has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Asure Software has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares Jacobs Solutions and Asure Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jacobs Solutions	2.40%	23.96%	7.02%
Asure Software	-2.30%	9.46%	3.72%

Earnings and Valuation

This table compares Jacobs Solutions and Asure Software”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jacobs Solutions	$12.03 billion	1.55	$289.34 million	$2.82	55.87
Asure Software	$159.20 million	1.97	-$13.13 million	($0.12)	-86.50

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

Analyst Ratings

This is a breakdown of current ratings for Jacobs Solutions and Asure Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jacobs Solutions	0	6	5	0	2.45
Asure Software	1	1	2	1	2.60

Jacobs Solutions presently has a consensus price target of $156.78, indicating a potential downside of 0.49%. Asure Software has a consensus price target of $13.00, indicating a potential upside of 25.24%. Given Asure Software’s stronger consensus rating and higher probable upside, analysts plainly believe Asure Software is more favorable than Jacobs Solutions.

Institutional & Insider Ownership

85.7% of Jacobs Solutions shares are owned by institutional investors. Comparatively, 71.6% of Asure Software shares are owned by institutional investors. 0.5% of Jacobs Solutions shares are owned by company insiders. Comparatively, 8.9% of Asure Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Jacobs Solutions beats Asure Software on 10 of the 15 factors compared between the two stocks.

About Jacobs Solutions

Jacobs Solutions Inc. is a global professional services company that provides consulting, advisory, engineering, design and project and program management services. Its work spans infrastructure, water, environmental services, transportation, energy and advanced facilities, including projects for life sciences and advanced manufacturing clients. The company serves public- and private-sector clients in markets around the world. Founded in 1947 by Joseph J. Jacobs, the business grew from an engineering firm into a multinational services provider.

About Asure Software

Asure Software, Inc. (NASDAQ: ASUR) provides cloud-based human capital management (HCM) software and services for small and midsized businesses. Its platform is designed to help employers manage core workforce and administrative processes through a unified suite of online tools. Asure’s products and services include payroll processing and tax services, time and attendance tracking, human resources management, benefits administration, employee onboarding, talent management, and employee self-service.