Contrasting Kayak Software (KYAK) and MINDBODY (MB)

MINDBODY (NASDAQ: MB) and Kayak Software (NASDAQ:KYAK) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for MINDBODY and Kayak Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MINDBODY 0 2 8 0 2.80
Kayak Software 0 0 0 0 N/A

MINDBODY presently has a consensus target price of $32.15, indicating a potential downside of 10.69%. Given MINDBODY’s higher probable upside, equities research analysts clearly believe MINDBODY is more favorable than Kayak Software.

Valuation & Earnings

This table compares MINDBODY and Kayak Software’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MINDBODY $139.02 million 12.09 -$22.97 million ($0.38) -94.74
Kayak Software N/A N/A N/A $0.43 93.19

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

Institutional & Insider Ownership

90.2% of MINDBODY shares are owned by institutional investors. 8.2% of MINDBODY shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares MINDBODY and Kayak Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MINDBODY -9.26% -8.39% -6.68%
Kayak Software 2.58% 2.19% 1.98%

Summary

MINDBODY beats Kayak Software on 5 of the 9 factors compared between the two stocks.

MINDBODY Company Profile

MINDBODY, Inc. is a provider of cloud-based business management software for the wellness services industry and operates as a consumer marketplace with local business subscribers on its platform. The Company’s subscribers provide a range of wellness services to active consumers. Its integrated software and payments platform helps business owners in the wellness services industry run, market and build their businesses. It also helps consumers discover, evaluate, engage and transact with these businesses through the Web and mobile devices. The platform addresses various aspects of operating a wellness business, including client scheduling and online booking; retail point-of-sale; analytics and reporting; user experience; mobility; social integration; dynamic cloud-based architecture; open platform for third-party application development; integration with other cloud-based partners, and security and compliance.

Kayak Software Company Profile

Centralizing online travel deals is smooth sailing for Kayak Software. Through its websites (KAYAK.com, swoodoo.com, and SideStep.com) in about 15 countries, the company displays rates on airfare, hotels, rental cars, and cruises from more than 500 other travel websites. Kayak Software offers fare information from Continental Airlines and American Airlines, as well as prices from Funjet Vacations, Marriott International, and InterContinental Hotel Group, among others. In addition to booking, the firm’s websites and mobile applications provide destination information, travel tips, member discounts, and hotel descriptions. Founded in 2004, Kayak Software filed to go public in late 2010.

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