Head to Head Analysis: Lightspeed Commerce (NYSE:LSPD) & AppFolio (NASDAQ:APPF)

Lightspeed Commerce (NYSE:LSPD) and AppFolio (NASDAQ:APPF) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Valuation & Earnings

This table compares Lightspeed Commerce and AppFolio”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightspeed Commerce	$1.19 billion	1.04	-$667.20 million	($4.62)	-1.95
AppFolio	$950.82 million	6.08	$140.92 million	$4.20	38.90

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

Profitability

This table compares Lightspeed Commerce and AppFolio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lightspeed Commerce	-58.15%	0.37%	0.34%
AppFolio	15.27%	32.35%	25.69%

Risk & Volatility

Lightspeed Commerce has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, AppFolio has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

68.7% of Lightspeed Commerce shares are owned by institutional investors. Comparatively, 85.2% of AppFolio shares are owned by institutional investors. 1.6% of AppFolio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lightspeed Commerce and AppFolio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightspeed Commerce	2	8	3	0	2.08
AppFolio	0	1	9	0	2.90

Lightspeed Commerce presently has a consensus target price of $13.09, indicating a potential upside of 45.60%. AppFolio has a consensus target price of $252.29, indicating a potential upside of 54.41%. Given AppFolio’s stronger consensus rating and higher possible upside, analysts clearly believe AppFolio is more favorable than Lightspeed Commerce.

Summary

AppFolio beats Lightspeed Commerce on 12 of the 14 factors compared between the two stocks.

About Lightspeed Commerce

Lightspeed Commerce Inc. engages in sale of cloud-based software subscriptions and payments solutions for small and midsize businesses, retailers, restaurants, and golf course operators in North America, Europe, the United Kingdom, Australia, New Zealand, and internationally. Its Software as a Service platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Retail, Lightspeed eCommerce, Lightspeed Restaurant, and Lightspeed B2B solutions. In addition, it sells hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montreal, Canada.

About AppFolio

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions. The company also provides value-added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.