Intuit (NASDAQ:INTU) and Citrix Systems (NASDAQ:CTXS) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Volatility & Risk
Intuit has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Citrix Systems has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.
Profitability
This table compares Intuit and Citrix Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Intuit | 23.78% | 40.79% | 22.22% |
| Citrix Systems | 18.52% | 391.74% | 13.02% |
Institutional and Insider Ownership
85.5% of Intuit shares are owned by institutional investors. Comparatively, 88.6% of Citrix Systems shares are owned by institutional investors. 4.1% of Intuit shares are owned by insiders. Comparatively, 0.5% of Citrix Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Intuit and Citrix Systems' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Intuit | $7.68 billion | 11.71 | $1.83 billion | $6.56 | 52.34 |
| Citrix Systems | $3.01 billion | 4.91 | $681.81 million | $4.13 | 29.09 |
Intuit has higher revenue and earnings than Citrix Systems. Citrix Systems is trading at a lower price-to-earnings ratio than Intuit, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Intuit and Citrix Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Intuit | 2 | 3 | 13 | 0 | 2.61 |
| Citrix Systems | 1 | 7 | 6 | 1 | 2.47 |
Intuit presently has a consensus price target of $376.0588, suggesting a potential upside of 9.53%. Citrix Systems has a consensus price target of $152.9333, suggesting a potential upside of 27.27%. Given Citrix Systems' higher probable upside, analysts clearly believe Citrix Systems is more favorable than Intuit.
Dividends
Intuit pays an annual dividend of $2.36 per share and has a dividend yield of 0.7%. Citrix Systems pays an annual dividend of $1.40 per share and has a dividend yield of 1.2%. Intuit pays out 36.0% of its earnings in the form of a dividend. Citrix Systems pays out 33.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Intuit has increased its dividend for 8 consecutive years and Citrix Systems has increased its dividend for 1 consecutive years. Citrix Systems is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Intuit beats Citrix Systems on 12 of the 18 factors compared between the two stocks.
