Critical Contrast: OneStream (NASDAQ:OS) and nCino (NASDAQ:NCNO)

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

Earnings and Valuation

This table compares OneStream and nCino”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneStream	$601.93 million	9.80	-$50.30 million	($0.28)	-85.71
nCino	$594.78 million	3.97	$5.18 million	$0.30	74.44

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneStream	-8.36%	11.28%	6.68%
nCino	5.40%	7.71%	4.83%

Insider & Institutional Ownership

94.8% of nCino shares are owned by institutional investors. 12.8% of OneStream shares are owned by insiders. Comparatively, 1.9% of nCino shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for OneStream and nCino, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneStream	3	17	0	0	1.85
nCino	1	6	9	1	2.59

OneStream currently has a consensus target price of $24.06, indicating a potential upside of 0.26%. nCino has a consensus target price of $23.42, indicating a potential upside of 4.86%. Given nCino’s stronger consensus rating and higher possible upside, analysts plainly believe nCino is more favorable than OneStream.

Risk and Volatility

OneStream has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, nCino has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Summary

nCino beats OneStream on 9 of the 15 factors compared between the two stocks.

About OneStream

OneStream, Inc. is a holding company, which engages in the development of an artificial intelligence (AI) based enterprise finance platform. The firm offers Digital Finance Cloud, an AI-enabled and extensible software platform that unifies core financial functions and operational data and processes. The company was founded by Craig Colby and Thomas Shea on October 15, 2021 and is headquartered in Birmingham, MI.

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.