Softcat (SCT) Competitors

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

Does the MarketBeat Community believe in SCT or MIDW?

Softcat received 185 more outperform votes than Midwich Group when rated by MarketBeat users. However, 73.55% of users gave Midwich Group an outperform vote while only 70.69% of users gave Softcat an outperform vote.

Company	Underperform	Outperform
Softcat	Outperform Votes 299 70.69%	Underperform Votes 124 29.31%
Midwich Group	Outperform Votes 114 73.55%	Underperform Votes 41 26.45%

Is SCT or MIDW a better dividend stock?

Softcat pays an annual dividend of GBX 26 per share and has a dividend yield of 1.7%. Midwich Group pays an annual dividend of GBX 17 per share and has a dividend yield of 5.8%. Softcat pays out 4,642.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Midwich Group pays out 7,727.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Which has stronger valuation and earnings, 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	£940.05M	3.21	£113.23M	£0.56	2,705.36
Midwich Group	£1.32B	0.23	£22.48M	£0.22	1,327.27

Do analysts prefer SCT or MIDW?

Softcat currently has a consensus price target of GBX 1,457.50, suggesting a potential downside of 3.80%. Midwich Group has a consensus price target of GBX 620, suggesting a potential upside of 112.33%. Given Midwich Group's stronger consensus rating and higher probable upside, analysts clearly believe Midwich Group is more favorable than Softcat.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Softcat	2 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.00
Midwich Group	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00

Is SCT or MIDW more profitable?

Softcat has a net margin of 12.04% compared to Midwich Group's net margin of 1.70%. Softcat's return on equity of 50.40% beat Midwich Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Softcat	12.04%	50.40%	13.64%
Midwich Group	1.70%	13.25%	3.70%

Does the media refer more to SCT or MIDW?

In the previous week, Midwich Group had 2 more articles in the media than Softcat. MarketBeat recorded 2 mentions for Midwich Group and 0 mentions for Softcat. Midwich Group's average media sentiment score of 0.55 beat Softcat's score of 0.00 indicating that Midwich Group is being referred to more favorably in the news media.

Company	Overall Sentiment
Softcat	Neutral
Midwich Group	Positive

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

45.1% of Softcat shares are owned by institutional investors. Comparatively, 55.8% of Midwich Group shares are owned by institutional investors. 43.6% of Softcat shares are owned by company insiders. Comparatively, 26.2% of Midwich Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Which has more volatility and risk, SCT or MIDW?

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

Summary

Softcat beats Midwich Group on 12 of the 20 factors compared between the two stocks.