Head-To-Head Review: Unity Software (NYSE:U) & Upland Software (NASDAQ:UPLD)
by Kim Johansen · The Markets DailyUnity Software (NYSE:U – Get Free Report) and Upland Software (NASDAQ:UPLD – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations for Unity Software and Upland Software, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Unity Software | 1 | 3 | 18 | 1 | 2.83 |
| Upland Software | 1 | 0 | 2 | 0 | 2.33 |
Unity Software presently has a consensus price target of $48.01, suggesting a potential upside of 17.47%. Upland Software has a consensus price target of $12.50, suggesting a potential upside of 216.46%. Given Upland Software’s higher probable upside, analysts plainly believe Upland Software is more favorable than Unity Software.
Valuation and Earnings
This table compares Unity Software and Upland Software”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Unity Software | $1.85 billion | 9.72 | -$402.77 million | ($1.36) | -30.05 |
| Upland Software | $197.67 million | 0.06 | -$38.90 million | ($14.43) | -0.27 |
Upland Software has lower revenue, but higher earnings than Unity Software. Unity Software is trading at a lower price-to-earnings ratio than Upland Software, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
73.5% of Unity Software shares are held by institutional investors. Comparatively, 77.8% of Upland Software shares are held by institutional investors. 0.8% of Unity Software shares are held by company insiders. Comparatively, 14.6% of Upland Software shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Unity Software and Upland Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Unity Software | -28.97% | 4.64% | 2.16% |
| Upland Software | -18.50% | -46.06% | 6.92% |
Volatility & Risk
Unity Software has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Upland Software has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.
Summary
Unity Software beats Upland Software on 8 of the 15 factors compared between the two stocks.
About Unity Software
Unity Software Inc. operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide. The company was founded in 2004 and is headquartered in San Francisco, California.
About Upland Software
Upland Software, Inc., together with its subsidiaries, provides cloud-based software applications under the Upland brand name in the United States, the United Kingdom, Canada, and internationally. It offers software applications that enable organizations to plan, manage and execute projects, and work in the areas of marketing, sales, contact center, knowledge management, project management, information technology, business operations, human resources, and legal. The company also provides professional services, such as implementation, data extraction, integration and configuration, and training services, as well as customer support services. It serves corporations, government agencies, and small and medium-sized businesses in the financial, consulting, technology, manufacturing, media, telecommunication, insurance, non-profit healthcare, life sciences, retail, and hospitality sectors. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was incorporated in 2010 and is headquartered in Austin, Texas.