Financial Analysis: Manhattan Associates (NASDAQ:MANH) and FalconStor Software (NASDAQ:FALCD)

Manhattan Associates (NASDAQ:MANH) and FalconStor Software (OTCMKTS:FALCD) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Institutional and Insider Ownership

0.2% of FalconStor Software shares are held by institutional investors. 0.7% of Manhattan Associates shares are held by insiders. Comparatively, 61.5% of FalconStor Software shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Manhattan Associates and FalconStor Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manhattan Associates 15.58% 63.78% 26.92%
FalconStor Software -9.85% -0.46% -2.07%

Risk and Volatility

Manhattan Associates has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, FalconStor Software has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Manhattan Associates and FalconStor Software, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manhattan Associates 0 0 3 0 3.00
FalconStor Software 0 0 0 0 N/A

Manhattan Associates currently has a consensus price target of $94.00, indicating a potential upside of 24.49%. Given Manhattan Associates’ higher probable upside, research analysts plainly believe Manhattan Associates is more favorable than FalconStor Software.

Earnings & Valuation

This table compares Manhattan Associates and FalconStor Software’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manhattan Associates $559.16 million 8.63 $104.69 million $1.58 47.79
FalconStor Software $17.84 million 2.99 -$910,000.00 N/A N/A

Manhattan Associates has higher revenue and earnings than FalconStor Software.

Summary

Manhattan Associates beats FalconStor Software on 9 of the 11 factors compared between the two stocks.

About Manhattan Associates

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. The company offers Manhattan SCALE, a portfolio of logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management, and transportation execution services; and Manhattan Active, a set of enterprise and store omni-channel solutions. It also provides inventory optimization and planning solutions; maintenance services comprising customer support services and software enhancements; professional services, such as solutions planning and implementation, and related consulting services; and training and change management services. In addition, the company resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. It offers products through direct sales personnel, as well as through partnership agreements with various organizations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1990 and is headquartered in Atlanta, Georgia.

About FalconStor Software

FalconStor Software, Inc., a storage software company, develops, manufactures, and sells data migration, business continuity, disaster recovery, optimized backup, de-duplication solutions, and other related maintenance, implementation, and engineering services worldwide. It offers FalconStor Data Mastery Platform, a software-defined platform that provides migration, continuity, protection/recovery, and optimization for storage environment through a single management interface; FalconStor network storage server for migration, storage virtualization, provisioning, and management; and FalconStor continuous data protector for bootable snapshots, zero-impact backup, and local and remote disaster recovery. The company also provides FalconStor optimized backup and deduplication solution for optimized backup, archive to tape, block and file based deduplication, and storage capacity optimization. In addition, it offers maintenance, implementation, and engineering services. The company sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. FalconStor Software, Inc. was incorporated in 1994 and is headquartered in Austin, Texas.

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