Thoughtworks (NASDAQ:TWKS – Get Free Report) and MicroAlgo (NASDAQ:MLGO – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Risk & Volatility
Thoughtworks has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, MicroAlgo has a beta of 3.14, meaning that its stock price is 214% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Thoughtworks and MicroAlgo, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Thoughtworks | 1 | 8 | 1 | 0 | 2.00 |
MicroAlgo | 0 | 0 | 0 | 0 | N/A |
Profitability
This table compares Thoughtworks and MicroAlgo’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Thoughtworks | -11.20% | -5.81% | -3.42% |
MicroAlgo | N/A | N/A | N/A |
Insider and Institutional Ownership
32.8% of Thoughtworks shares are owned by institutional investors. Comparatively, 1.1% of MicroAlgo shares are owned by institutional investors. 2.3% of Thoughtworks shares are owned by insiders. Comparatively, 22.7% of MicroAlgo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Thoughtworks and MicroAlgo’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Thoughtworks | $1.03 billion | 1.36 | -$68.66 million | ($0.29) | -14.97 |
MicroAlgo | $81.89 million | 0.03 | -$37.87 million | N/A | N/A |
MicroAlgo has lower revenue, but higher earnings than Thoughtworks.
Summary
MicroAlgo beats Thoughtworks on 6 of the 11 factors compared between the two stocks.
About Thoughtworks
Thoughtworks Holding, Inc. provides technology consultancy services in North America, the Asia Pacific, Europe, and Latin America. The company's consultancy services integrate strategy, design, and software engineering to enable enterprises and technology disruptors to thrive as modern digital businesses. It offers enterprise modernization, platforms, and cloud services, including modernization strategy and execution, digital platform strategy and engineering organization transformation, cloud modernization, cloud-native application support and evolution, and platform assessment and remediation; and customer experience, product, and design services comprising idea to market, customer experience strategy, product management transformation, and product design and delivery. The company also provides data and artificial intelligence services, such as data strategy, intelligent products, data platforms and data mesh, continuous delivery for machine learning, and data governance; digital transformation and operations services, which include delivery transformation, digital fluency, organization transformation, value-driven portfolio management, technology strategy, executive advisory, and digital foundations training; and DAMO managed services. It serves its clients in various industry verticals, including technology and business services; energy, public, and health services; retail and consumer; financial services and insurance; and automotive, travel, and transportation. The company was incorporated in 1993 and is headquartered in Chicago, Illinois.
About MicroAlgo
MicroAlgo Inc. develops and applies central processing algorithm solutions to customers in internet advertisement, gaming, and intelligent chip industries in the People’s Republic of China, Hong Kong, and internationally. The company operates through two segments, Central Processing Algorithm Services, and Intelligent Chips and Services. It offers services that includes algorithm optimization, accelerating computing power without the need for hardware upgrades, data processing, and data intelligence services. The company also provides advertising distribution, mobile game publishing and licensing, software services, and comprehensive solutions for enterprise customers, as well as intelligent chips solutions for the semiconductor sector. In addition, it engages in the resale of intelligent chips and accessories; and provision of software development. MicroAlgo Inc. is headquartered in Shenzhen, the People’s Republic of China. MicroAlgo Inc. is a subsidiary of WiMi Hologram Cloud Inc.
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