Financial Investigation: MeridianLink (NYSE: MLNK) vs. Altair Engineering (NASDAQ: ALTR)


MeridianLink (NYSE: MLNKGet a rating) and Altaïr Engineering (NASDAQ:ALTRGet a rating) are both business services companies, but which stock is superior? We’ll compare the two companies based on earnings strength, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Valuation and benefits

This table compares revenue, earnings per share (EPS), and valuation of MeridianLink and Altair Engineering.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
MeridianLink $267.68 million 5.44 -$10.00 million ($0.32) -56.53
Altair Engineering $532.18 million 8.38 -8.79 million dollars ($0.43) -130.02

Altair Engineering has higher revenue and profit than MeridianLink. Altair Engineering trades at a lower price-to-earnings ratio than MeridianLink, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

70.8% of MeridianLink shares are held by institutional investors. By comparison, 97.5% of Altair Engineering’s shares are held by institutional investors. 20.9% of MeridianLink shares are held by insiders. By comparison, 22.7% of Altair Engineering shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of MeridianLink and Altair Engineering.

Net margins Return on equity return on assets
MeridianLink -3.58% -1.56% -0.64%
Altair Engineering -5.73% 1.79% 0.97%

Analyst Recommendations

This is a summary of current recommendations and price targets for MeridianLink and Altair Engineering, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
MeridianLink 0 3 5 0 2.63
Altair Engineering 1 2 3 0 2.33

MeridianLink currently has a consensus price target of $26.11, indicating a potential upside of 44.34%. Altair Engineering has a consensus price target of $70.60, indicating a potential upside of 26.27%. Given MeridianLink’s stronger consensus rating and higher likely upside, stock analysts clearly think MeridianLink is more favorable than Altair Engineering.

Summary

Altair Engineering beats MeridianLink on 7 out of 13 factors compared between the two stocks.

About Meridian Link

(Get a rating)

MeridianLink, Inc., a software and services company, provides software solutions to banks, credit unions, mortgage lenders, specialty loan providers and consumer reporting agencies in the United States. The Company offers MeridianLink Consumer, a consumer lending and account opening platform; MeridianLink Opening, an online account opening software that unifies deposit account opening and funding for various channels and products; and MeridianLink DecisionLender, loan origination software (LOS) for financial companies. It also provides MeridianLink Engage, an end-to-end consumer loan, account and card marketing automation solution; MeridianLink Mortgage, an end-to-end SaaS cloud-based loan origination software; MeridianLink Collect, a cloud-based debt collection software; and Mortgage Credit Link, an online order processing center. In addition, the Company provides solutions, including end-to-end platform, loan origination system, mortgage loan origination system, deposit account opening, data and reporting, collections , as well as advice and analysis. MeridianLink, Inc. was founded in 1998 and is headquartered in Costa Mesa, California.

About Altair Engineering

(Get a rating)

Altair Engineering logoAltair Engineering Inc., together with its subsidiaries, provides software and cloud solutions in the fields of simulation, high performance computing, data analysis and artificial intelligence worldwide. The Company operates in two segments, software and customer engineering services. The Software segment includes solvers and optimization technology products, software applications and high-performance computing hardware products, modeling and visualization tools, analytics and data analysis products, platform and IoT analysis tools, as well as support and complementary software products. This segment also offers software technologies in the areas of computational fluid dynamics and fatigue, manufacturing process simulation and cost estimation for applications in the marine, motorcycle, aerospace, chemicals and architecture; and software-related services, such as consulting, implementation, and training services that focus on expertise and analysis of product design and development from the component level through to complete product engineering at different stages of the life cycle. The Customer Engineering Services segment provides customer engineering services. Additionally, the company is involved in the development and sale of solid-state lighting technologies as well as communication and control protocols based on its intellectual property for the direct replacement of fluorescent tubes with LED lamps. Its integrated software suite optimizes design performance in various disciplines including structures, motion, fluids, thermal management, electromagnetics, system modeling and embedded systems. The company’s customers include universities, government agencies, manufacturers, pharmaceutical companies, banks, financial services and insurance companies, weather forecasting agencies and electronics design companies. Altair Engineering Inc. was incorporated in 1985 and is headquartered in Troy, Michigan.



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