Financial Contrast: Cognyte Software (NASDAQ:CGNT) and Hello Group (NASDAQ:MOMO)

Cognyte Software (NASDAQ:CGNT) and Hello Group (NASDAQ:MOMO) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Insider & Institutional Ownership

72.9% of Cognyte Software shares are owned by institutional investors. Comparatively, 51.0% of Hello Group shares are owned by institutional investors. 62.7% of Cognyte Software shares are owned by company insiders. Comparatively, 61.4% of Hello Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cognyte Software and Hello Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cognyte Software	-0.16%	0.74%	0.33%
Hello Group	7.75%	7.51%	5.51%

Risk & Volatility

Cognyte Software has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cognyte Software and Hello Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognyte Software	1	1	2	1	2.60
Hello Group	0	2	0	0	2.00

Cognyte Software presently has a consensus target price of $13.50, indicating a potential upside of 35.27%. Hello Group has a consensus target price of $8.10, indicating a potential upside of 26.56%. Given Cognyte Software’s stronger consensus rating and higher probable upside, analysts plainly believe Cognyte Software is more favorable than Hello Group.

Earnings & Valuation

This table compares Cognyte Software and Hello Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cognyte Software	$400.04 million	1.82	-$640,000.00	($0.01)	-998.00
Hello Group	$10.37 billion	0.07	$114.97 million	$0.67	9.55

Hello Group has higher revenue and earnings than Cognyte Software. Cognyte Software is trading at a lower price-to-earnings ratio than Hello Group, indicating that it is currently the more affordable of the two stocks.

Summary

Cognyte Software beats Hello Group on 8 of the 15 factors compared between the two stocks.

About Cognyte Software

Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies. Cognyte Software Ltd. was incorporated in 2020 and is headquartered in Herzliya, Israel.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.