ON24 (NYSE:ONTF – Get Free Report) and Microsoft (NASDAQ:MSFT – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Risk and Volatility
ON24 has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Microsoft has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Earnings & Valuation
This table compares ON24 and Microsoft”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ON24 | $148.08 million | 1.39 | -$51.79 million | ($0.96) | -5.06 |
| Microsoft | $270.01 billion | 12.08 | $88.14 billion | $12.94 | 33.90 |
Microsoft has higher revenue and earnings than ON24. ON24 is trading at a lower price-to-earnings ratio than Microsoft, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
83.9% of ON24 shares are owned by institutional investors. Comparatively, 71.1% of Microsoft shares are owned by institutional investors. 32.3% of ON24 shares are owned by company insiders. Comparatively, 0.0% of Microsoft shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares ON24 and Microsoft’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ON24 | -28.63% | -23.10% | -15.05% |
| Microsoft | 35.43% | 33.36% | 18.07% |
Analyst Recommendations
This is a breakdown of recent recommendations for ON24 and Microsoft, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ON24 | 0 | 5 | 0 | 0 | 2.00 |
| Microsoft | 0 | 5 | 30 | 0 | 2.86 |
ON24 presently has a consensus target price of $5.33, indicating a potential upside of 9.74%. Microsoft has a consensus target price of $507.77, indicating a potential upside of 15.74%. Given Microsoft’s stronger consensus rating and higher probable upside, analysts clearly believe Microsoft is more favorable than ON24.
Summary
Microsoft beats ON24 on 12 of the 14 factors compared between the two stocks.
About ON24
ON24, Inc. provides a cloud-based intelligent engagement platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide. The company provides ON24 Elite, for live and interactive webinar experience; ON24 Breakouts, for live breakout room experience that facilitates networking, collaboration, and interactivity between users; ON24 Forums, for live and interactive experience, which facilitates video-to-video interaction between presenters and audiences; ON24 Go Live, for live and interactive video event experience that enables presenters and attendees to engage face-to-face in real-time; and ON24 Virtual Confrence, for live and large scale managed virtual event experience. It also offers ON24 Engagement Hub, for always-on multimedia content experience; ON24 Target, for personalized and curated landing page experience; ON24 Intelligence, for analytics backbone that captures first-person data to power the insights, benchmarking, reporting, and artificial intelligence and machine learning engine; ON24 AI-powered ACE, for enabling hyper-personalization at scale across ON24 experiences; ON24 Connect, for ecosystem of third-party application integrations; and ON24 Services and Platform Support, which provides a portfolio of professional services that provide consulting and support for product and platform adoption. In addition, the company offers consulting services, such as experience management, monitoring and production, implementation, and other support services. It sells its products through direct sales. The company serves technology, financial services, healthcare, industrial and manufacturing, professional services, and business-to-business information service companies. The company was formerly known as NewsDirect, Inc. and changed its name to ON24, Inc. in December 1998. ON24, Inc. was incorporated in 1998 and is headquartered in San Francisco, California.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
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