Softcat (SCT) Competitors

Softcat (LON:SCT) and Midwich Group (LON:MIDW) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations, media sentiment and valuation.

Is SCT or MIDW more profitable?

Softcat has a net margin of 12.37% compared to Midwich Group's net margin of 1.70%. Softcat's return on equity of 43.79% beat Midwich Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Softcat	12.37%	43.79%	13.64%
Midwich Group	1.70%	12.88%	3.70%

Which has higher earnings and valuation, SCT or MIDW?

Softcat has higher earnings, but lower revenue than Midwich Group. Midwich Group is trading at a lower price-to-earnings ratio than Softcat, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Softcat	£958.56M	3.31	£118.54M	£59.73	26.69
Midwich Group	£1.31B	0.17	£22.18M	£22.49	9.92

Is SCT or MIDW a better dividend stock?

Softcat pays an annual dividend of GBX 26 per share and has a dividend yield of 1.6%. Midwich Group pays an annual dividend of GBX 17 per share and has a dividend yield of 7.6%. Softcat pays out 43.5% of its earnings in the form of a dividend. Midwich Group pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Do institutionals and insiders hold more shares of SCT or MIDW?

45.1% of Softcat shares are held by institutional investors. Comparatively, 55.8% of Midwich Group shares are held by institutional investors. 43.6% of Softcat shares are held by company insiders. Comparatively, 26.2% of Midwich Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Which has more volatility & risk, SCT or MIDW?

Softcat has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Midwich Group has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Does the media prefer SCT or MIDW?

In the previous week, Softcat had 3 more articles in the media than Midwich Group. MarketBeat recorded 3 mentions for Softcat and 0 mentions for Midwich Group. Softcat's average media sentiment score of 0.30 beat Midwich Group's score of 0.00 indicating that Softcat is being referred to more favorably in the media.

Company	Overall Sentiment
Softcat	Neutral
Midwich Group	Neutral

Do analysts recommend SCT or MIDW?

Softcat presently has a consensus target price of GBX 1,777.25, indicating a potential upside of 11.50%. Midwich Group has a consensus target price of GBX 350, indicating a potential upside of 56.95%. Given Midwich Group's stronger consensus rating and higher possible upside, analysts plainly believe Midwich Group is more favorable than Softcat.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Softcat	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.50
Midwich Group	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00

Summary

Softcat beats Midwich Group on 13 of the 18 factors compared between the two stocks.