Critical Contrast: Procore Technologies (NYSE:PCOR) and Clearwater Analytics (NYSE:CWAN)

Procore Technologies (NYSE:PCOR) and Clearwater Analytics (NYSE:CWAN) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

81.1% of Procore Technologies shares are held by institutional investors. Comparatively, 50.1% of Clearwater Analytics shares are held by institutional investors. 16.8% of Procore Technologies shares are held by insiders. Comparatively, 3.3% of Clearwater Analytics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Procore Technologies and Clearwater Analytics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procore Technologies	-7.62%	-3.96%	-2.34%
Clearwater Analytics	-5.37%	3.02%	2.10%

Earnings & Valuation

This table compares Procore Technologies and Clearwater Analytics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procore Technologies	$1.32 billion	6.24	-$100.78 million	($0.67)	-81.61
Clearwater Analytics	$731.37 million	9.77	-$38.81 million	($0.14)	-172.82

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

Risk and Volatility

Procore Technologies has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Clearwater Analytics has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Procore Technologies and Clearwater Analytics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procore Technologies	1	3	15	0	2.74
Clearwater Analytics	1	10	3	0	2.14

Procore Technologies presently has a consensus target price of $73.75, indicating a potential upside of 34.87%. Clearwater Analytics has a consensus target price of $26.17, indicating a potential upside of 8.16%. Given Procore Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Procore Technologies is more favorable than Clearwater Analytics.

Summary

Procore Technologies beats Clearwater Analytics on 8 of the 14 factors compared between the two stocks.

About Procore Technologies

Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Workforce Management, that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time; and Construction Intelligence, that allows customers to capture, manage, and learn from data for project and portfolio reporting, analytics, and artificial intelligence-guided workflows, as well as to monitor projects and drive informed decision-making for business needs. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.