Critical Review: Link Motion (LKM) versus SS&C Technologies (SSNC)

SS&C Technologies (NYSE: LKM) and Link Motion (NYSE:LKM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Valuation & Earnings

This table compares SS&C Technologies and Link Motion’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SS&C Technologies $1.68 billion 7.63 $328.86 million $1.79 29.80
Link Motion $57.61 million 1.56 -$27.12 million N/A N/A

SS&C Technologies has higher revenue and earnings than Link Motion.

Institutional & Insider Ownership

83.6% of SS&C Technologies shares are held by institutional investors. Comparatively, 3.8% of Link Motion shares are held by institutional investors. 17.5% of SS&C Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

SS&C Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 0.6%. Link Motion does not pay a dividend. SS&C Technologies pays out 17.9% of its earnings in the form of a dividend. SS&C Technologies has raised its dividend for 3 consecutive years.

Profitability

This table compares SS&C Technologies and Link Motion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SS&C Technologies 9.99% 14.43% 5.80%
Link Motion -9.15% 29.16% 14.37%

Analyst Ratings

This is a summary of current ratings and price targets for SS&C Technologies and Link Motion, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SS&C Technologies 0 3 9 1 2.85
Link Motion 0 0 1 0 3.00

SS&C Technologies presently has a consensus target price of $60.80, indicating a potential upside of 13.99%. Link Motion has a consensus target price of $13.00, indicating a potential upside of 1,313.04%. Given Link Motion’s stronger consensus rating and higher probable upside, analysts clearly believe Link Motion is more favorable than SS&C Technologies.

Risk and Volatility

SS&C Technologies has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Link Motion has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Summary

SS&C Technologies beats Link Motion on 12 of the 17 factors compared between the two stocks.

SS&C Technologies Company Profile

SS&C Technologies Holdings, Inc. provides software products and software-enabled services to financial services providers. Its products and services allow its clients to automate and integrate front-office functions, such as trading and modeling; middle-office functions, including portfolio management and reporting; and back-office functions comprising accounting, performance measurement, reconciliation, reporting, processing, and clearing. The company offers products and services in the areas of portfolio management/accounting software, performance measurement and attribution, banking and lending solutions, trading and treasury operations, client reporting, financial modeling, and property management. Its software-enabled services consist of on and offshore fund administration services; cloud-based portfolio management platform, outsourced daily reconciliation, and data management services; data management services; business process outsourcing investment accounting and operations, application software hosting, automated workflow integration, automated quality control mechanisms, and interface and connectivity services; financial data acquisition, transformation, and delivery; investor transaction processing platform; trade matching utility and delivery instruction database; and customized data feed; and connectivity service to broker-dealers and institutions. The company also provides consulting and implementation services, such as installation of systems, conversion of historical data, and training and support services. Its clients include multinational and retail banks, credit unions, hedge and private equity funds, funds of funds and family offices, institutional asset managers, insurance companies and pension funds, municipal finance groups, brokers/dealers, financial exchanges, commercial and real estate lenders, and property managers. SS&C Technologies Holdings, Inc. was founded in 1986 and is headquartered in Windsor, Connecticut.

Link Motion Company Profile

Link Motion Inc. operates as a smart car and smart ride company in the People's Republic of China and internationally. Its offerings include enabling technology solutions and secure connected carputers for the ecosystem of car businesses; and consumer ride sharing services, as well as mobile security, productivity, and other related applications. The company was formerly known as NQ Mobile Inc. and changed its name to Link Motion Inc. in March 2018. Link Motion Inc. was founded in 2005 and is based in Beijing, the People's Republic of China.

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