Udemy (NASDAQ:UDMY) and Braze (NASDAQ:BRZE) Critical Review

Udemy (NASDAQ:UDMY) and Braze (NASDAQ:BRZE) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Risk & Volatility

Udemy has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Braze has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares Udemy and Braze”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Udemy	$789.84 million	0.91	$3.81 million	$0.02	246.50
Braze	$738.18 million	3.62	-$131.29 million	($1.22)	-19.31

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

Analyst Ratings

This is a summary of recent ratings and target prices for Udemy and Braze, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Udemy	1	4	2	0	2.14
Braze	1	1	22	0	2.88

Udemy presently has a consensus target price of $8.80, indicating a potential upside of 78.50%. Braze has a consensus target price of $36.90, indicating a potential upside of 56.64%. Given Udemy’s higher possible upside, equities analysts plainly believe Udemy is more favorable than Braze.

Institutional & Insider Ownership

79.5% of Udemy shares are held by institutional investors. Comparatively, 90.5% of Braze shares are held by institutional investors. 2.1% of Udemy shares are held by insiders. Comparatively, 18.2% of Braze shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Udemy and Braze’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Udemy	0.48%	4.84%	1.68%
Braze	-17.78%	-18.75%	-10.60%

Summary

Udemy beats Braze on 9 of the 14 factors compared between the two stocks.

About Udemy

Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages. Its courses provide learning objectives, such as reskilling or upskilling in technology, business, soft skills, and personal development, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. The company was incorporated in 2010 and is headquartered in San Francisco, California.

About Braze

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.