Reviewing Onespan (NASDAQ:OSPN) and Tuya (NYSE:TUYA)

Onespan (NASDAQ:OSPN) and Tuya (NYSE:TUYA) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility and Risk

Onespan has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Tuya has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Institutional & Insider Ownership

95.5% of Onespan shares are owned by institutional investors. Comparatively, 11.5% of Tuya shares are owned by institutional investors. 2.0% of Onespan shares are owned by insiders. Comparatively, 2.1% of Tuya shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Onespan and Tuya”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onespan	$246.38 million	3.02	$72.90 million	$1.78	11.34
Tuya	$321.79 million	2.79	$57.89 million	$0.11	15.05

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

Profitability

This table compares Onespan and Tuya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onespan	27.76%	16.91%	11.81%
Tuya	20.16%	6.74%	5.96%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Onespan and Tuya, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onespan	0	2	2	0	2.50
Tuya	0	1	1	0	2.50

Onespan presently has a consensus price target of $17.00, suggesting a potential downside of 15.80%. Tuya has a consensus price target of $3.69, suggesting a potential upside of 122.96%. Given Tuya’s higher possible upside, analysts plainly believe Tuya is more favorable than Onespan.

Summary

Onespan beats Tuya on 9 of the 13 factors compared between the two stocks.

About Onespan

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, authentication, and secure digital agreements worldwide. The company offers OneSpan Sign, a range of e-signature requirements for occasional agreement to processing tens of thousands of transactions; OneSpan Cloud Authentication, a cloud-based multifactor authentication solution that supports a range of authentication options, including biometrics, push notification, and visual cryptograms for transaction data security, SMS, and hardware authenticators; and OneSpan Identity Verification, which enables banks and financial institutions identity verification services. It also provides Mobile Security Suite, a software development kit that protect mobile transactions; Digipass Authenticators, consisting of a wide variety of authentication devices; authentication servers that provides a range of strong authentication utilities and solutions designed to allow organizations to securely authenticate users and transactions; and Digipass FX1 BIO, a physical passkey with fingerprint scan built for the workforce authentication market. In addition, it offers Virtual Room, a purpose-built, high-assurance solution that blends the simplicity of a consumer video collaboration app with high-assurance identity and authentication security; OneSpan Notary, an online notary solution developed for organizations with in-house notaries; and OneSpan Trust Vault, a blockchain-based decentralized digital storage solution that helps organizations meet compliance, regulatory, and chain of custody requirements for critical documents. It sells its solutions through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in May 2018. OneSpan Inc. was founded in 1991 and is headquartered in Boston, Massachusetts.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.