Reviewing CDK Global Inc. (CDK)’s and Micro Focus International plc (NYSE:MFGP)’s results

CDK Global Inc. (NASDAQ:CDK) and Micro Focus International plc (NYSE:MFGP), both competing one another are Application Software companies. We will compare their institutional ownership, earnings and valuation, profitability, risk, dividends, analyst recommendations.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CDK Global Inc. 2.26B 2.79 389.80M 2.75 17.48
Micro Focus International plc 3.21B 2.51 726.23M 1.92 9.61

In table 1 we can see CDK Global Inc. and Micro Focus International plc’s top-line revenue, earnings per share (EPS) and valuation. Micro Focus International plc has lower earnings, but higher revenue than CDK Global Inc. The business that is currently more expensive of the two stocks is the one that has a higher P/E ratio. CDK Global Inc.’s currently higher P/E ratio means it is more expensive than Micro Focus International plc.

Profitability

Table 2 has CDK Global Inc. and Micro Focus International plc’s return on equity, return on assets and net margins.

Net Margins Return on Equity Return on Assets
CDK Global Inc. 17.25% -139.1% 13.6%
Micro Focus International plc 22.62% 0% 0%

Dividends

CDK Global Inc. dividend pay is $0.6 per share with 1.23% dividend yield annually. Meanhile, Micro Focus International plc’s yearly dividend is $0.93 per share and 4.86% dividend yield.

Analyst Recommendations

Recommendations and Ratings for CDK Global Inc. and Micro Focus International plc can be find in next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
CDK Global Inc. 0 2 0 2.00
Micro Focus International plc 0 0 0 0.00

CDK Global Inc.’s upside potential currently stands at 38.89% and an $68 average price target.

Insider & Institutional Ownership

The shares of both CDK Global Inc. and Micro Focus International plc are owned by institutional investors at 82.5% and 25.35% respectively. CDK Global Inc.’s share owned by insiders are 0.4%.

Performance

Here are the Week, Month, Quarter, Half Year, Year and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
CDK Global Inc. -4.74% -9.33% -21.37% -26.24% -31.37% -32.65%
Micro Focus International plc -5.54% 11.9% 8.48% 1.94% -43.41% -45.13%

For the past year CDK Global Inc. was less bearish than Micro Focus International plc.

Summary

CDK Global Inc. beats on 9 of the 16 factors Micro Focus International plc.

CDK Global, Inc. provides integrated information technology and digital marketing solutions to the automotive retail and other industries worldwide. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. It offers technology-based solutions, including automotive Website platforms; and advertising solutions comprising the management of digital advertising spend for original equipment manufacturers and automotive retailers. The companyÂ’s solutions automate and integrate various parts of the dealership and buying process from targeted digital advertising and marketing campaigns to the sale, financing, insuring, parts supply, repair, and maintenance of vehicles. It provides solutions to dealers serving approximately 28,000 retail locations and automotive manufacturers. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.

Micro Focus International plc, an infrastructure software company, develops, sells, and supports software products and solutions to federal, airlines, and healthcare industries in the United Kingdom, the United States, Germany, France, Japan, and internationally. The company operates through Micro Focus and SUSE segments. It provides software products in the areas of collaboration, endpoint management, file and networking services, identity and access management, information archiving, security management, terminal emulation, and software delivery and testing, as well as COBOL development and mainframe, and data center solutions. The company offers enterprise Linux, OpenStack private cloud, software-defined storage, and other IT infrastructure management and optimization solutions; and professional, and training and education services. Micro Focus International plc was founded in 1976 and is headquartered in Newbury, the United Kingdom.

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