Two IT Stocks - HSN vs MP1

  • May 19, 2019 AEST
  • Team Kalkine
Two IT Stocks - HSN vs MP1

In the last one year I.T stocks have consistently performed well in the market. I.T sector has outdone the overall market by more than 20% in the last one-year period. Let's have a look at some of the IT stocks that might be capable of outperforming the broader market in the due course.

Hansen Technologies Limited (ASX: HSN) is an ASX listed I.T company having global operations in countries like USA, Australia, India, China, New Zealand etc. The company provides data management services for sectors like energy, water etc. Some of the company’s products are HubCX, PeaceCX, BannerCX etc.

Key features of HubCX (Source: Company’s website)

Recently, the company announced the acquisition of Sigma Systems at an enterprise value of A$166.2 million. The funding will be provided by a new ban debt facility of A$225 million. Sigma is a leading provider of catalogue driven software products, having a presence in more than 40 countries. According to Hansen, Sigma is a high-quality business, and the acquisition will expand the scope of Hansen’s global presence.

On 22nd February 2019, the HSN released its 1HFY19 results for the period ending on 31st December 2018. By the end of the 1 HFY19 period, the total revenue of the company stood at $113.92 million with net profit after tax (NPAT) of standing at$12.94 million. The basic earnings per share reduced from 9.2 cents per share (cps) in 1HFY18 to 6.6 cps in 1HFY19. The net cash at the end of the reporting period stood at $22.17 million.

The company has a market capitalisation of A$741.77 million. The stock has 52-week high and low of A$4.78 and A$2.85, respectively. The stock closed at A$3.8, after making an intraday high of A$3.895, as on 17th May. The last one-year return of the stock is negative 15.8%, and the YTD return stands at 7.3%.

Megaport Limited (ASX: MP1) is an information technology company headquartered in Australia. The company enables consumers with network connectivity with on-demand consumption, right-sized bandwidth and global availability. Some of the services provided by the company are cloud connectivity, data centre interconnect etc.

On demand connectivity (Image Source: Company’s Website)

On 15th May, the company released its investor presentation and discussed the rising trend in the spending on enterprise cloud service, which is expected to touch $303 billion by 2021. It distinguished itself from other network providers by claiming “pay for what you use, no setup fees’ business model, as traditional connectivity has expensive and locked-in pricing model. It also provides real time provisioning in 59 seconds. It also reported its cloud to cloud routing gaining traction from leading service providers like Microsoft Azure, Google Cloud, IBM Cloud etc.

In March 2019 quarterly performance, the company’s customers increased by 7% QoQ to a total of 1,367. Revenue for the period was reported at $8.96 million, an increase of 8% from the last quarter. The company used net cash of A$9.61 million from operating activities, A$4.02 million was used towards investing activities, and net cash of A$49.4 million was received from financing activities.

The company has a market capitalisation of A$705.41 million. The stock has 52-week high and low of A$5.84 and A$3.030, respectively. The stock closed at A$5.36, after making an intraday high of A$5.45, as on 17th May. The last one-year return of the stock is 44.2%, and the YTD return stands at 40.3%.


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