Head to Head Review: nCino (NASDAQ:NCNO) versus Pony AI (NASDAQ:PONY)

Pony AI (NASDAQ:PONY) and nCino (NASDAQ:NCNO) are both mid-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Pony AI and nCino, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pony AI	1	2	7	0	2.60
nCino	1	5	11	1	2.67

Pony AI currently has a consensus target price of $19.57, suggesting a potential upside of 190.21%. nCino has a consensus target price of $24.38, suggesting a potential upside of 12.67%. Given Pony AI’s higher possible upside, equities analysts plainly believe Pony AI is more favorable than nCino.

Insider and Institutional Ownership

94.8% of nCino shares are owned by institutional investors. 1.9% of nCino shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Pony AI has a beta of 3.87, indicating that its stock price is 287% more volatile than the S&P 500. Comparatively, nCino has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Pony AI and nCino’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pony AI	-118.47%	-14.86%	-13.97%
nCino	5.40%	7.71%	4.83%

Valuation & Earnings

This table compares Pony AI and nCino”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pony AI	$90.00 million	32.56	-$133.97 million	($0.36)	-18.74
nCino	$594.78 million	3.85	$5.18 million	$0.30	72.14

nCino has higher revenue and earnings than Pony AI. Pony AI is trading at a lower price-to-earnings ratio than nCino, indicating that it is currently the more affordable of the two stocks.

Summary

nCino beats Pony AI on 12 of the 15 factors compared between the two stocks.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.

About nCino

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.