WalkMe (NASDAQ:WKME) and Confluent (NASDAQ:CFLT) Head to Head Review

Confluent (NASDAQ:CFLT) and WalkMe (NASDAQ:WKME) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Confluent and WalkMe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Confluent	-56.99%	-44.16%	-14.52%
WalkMe	-22.15%	-71.73%	-11.53%

Insider and Institutional Ownership

78.1% of Confluent shares are owned by institutional investors. Comparatively, 70.9% of WalkMe shares are owned by institutional investors. 13.8% of Confluent shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Confluent and WalkMe’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Confluent	$776.95 million	12.63	-$442.75 million	($1.47)	-21.35
WalkMe	$266.95 million	2.63	-$59.14 million	($0.67)	-12.09

WalkMe has lower revenue, but higher earnings than Confluent. Confluent is trading at a lower price-to-earnings ratio than WalkMe, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Confluent and WalkMe, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Confluent	1	6	19	0	2.69
WalkMe	1	3	3	0	2.29

Confluent presently has a consensus price target of $32.77, indicating a potential upside of 4.43%. WalkMe has a consensus price target of $13.07, indicating a potential upside of 61.38%. Given WalkMe’s higher probable upside, analysts clearly believe WalkMe is more favorable than Confluent.

Volatility and Risk

Confluent has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, WalkMe has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500.

Summary

Confluent beats WalkMe on 8 of the 14 factors compared between the two stocks.

About Confluent

Confluent, Inc. operates a data streaming platform in the United States and internationally. The company provides platforms that allow customers to connect their applications, systems, and data layers, such as Confluent Cloud, a managed cloud-native software-as-a-service; and Confluent Platform, an enterprise-grade self-managed software. It offers connectors for existing applications, and IT and cloud infrastructure; Apache Flink services that allows teams to create reusable data streams that can be delivered real-time; ksqlDB, a data-in-motion database that allows users to build data-in-motion applications using a few SQL statements; stream governance, a managed data governance suite that is designed for the intricacies of streaming data, which allows teams to accelerate data streaming initiatives without bypassing controls for risk management and regulatory compliance; and stream designer which builds streaming data pipelines visually. In addition, the company offers professional services comprising packaged and residency offerings; education offerings consisting of instructor-led and self-paced training and certification guidance, technical resources, and access to hands-on training and certification exams; and certification programs. It serves banking and financial services industries, as well as retail and e-commerce, manufacturing, automotive, communication service providers, gaming, public sector, insurance, and technology industries. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.

About WalkMe

WalkMe Ltd. provides cloud-based digital adaption platform and associated professional services in the United States and internationally. The company's AI-driven digital adoption platform helps companies to effectively navigate change brought by technology, which stack, identifies, and delivers the personalized guidance and automation. In addition, the company WalkMe's platform is delivered via web, desktop or mobile and pre-packaged to support the key workflows. The company was formerly known as Make Tutorial Ltd. and changed its name to WalkMe Ltd. in March 2012. WalkMe Ltd. was incorporated in 2011 and is headquartered in Tel Aviv, Israel.