Head-To-Head Survey: Compass (NYSE:COMP) vs. Porch Group (NASDAQ:PRCH)

Compass (NYSE:COMP) and Porch Group (NASDAQ:PRCH) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Compass and Porch Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass	1	3	8	2	2.79
Porch Group	1	2	6	0	2.56

Compass presently has a consensus target price of $13.12, suggesting a potential upside of 9.53%. Porch Group has a consensus target price of $18.54, suggesting a potential upside of 35.54%. Given Porch Group’s higher possible upside, analysts plainly believe Porch Group is more favorable than Compass.

Volatility & Risk

Compass has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500. Comparatively, Porch Group has a beta of 3.13, indicating that its share price is 213% more volatile than the S&P 500.

Profitability

This table compares Compass and Porch Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass	0.17%	1.11%	0.44%
Porch Group	-3.41%	-115.59%	-2.08%

Earnings & Valuation

This table compares Compass and Porch Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass	$6.96 billion	1.29	-$58.50 million	$0.02	599.15
Porch Group	$482.41 million	3.62	$15.32 million	($0.17)	-80.47

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

Institutional & Insider Ownership

67.0% of Compass shares are owned by institutional investors. Comparatively, 48.5% of Porch Group shares are owned by institutional investors. 2.9% of Compass shares are owned by company insiders. Comparatively, 27.8% of Porch 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.

Summary

Compass beats Porch Group on 10 of the 15 factors compared between the two stocks.

About Compass

Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports. It also provides full-service title and escrow/settlement services to real estate agents' clients, real estate companies, and financial institutions relating to the closing of home purchases as well as the refinancing of home loans; and Compass Concierge, a program in which home sellers access to capital to front the cost of home improvement services. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was incorporated in 2012 and is headquartered in New York, New York.

About Porch Group

Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.