Analyzing Intuit (NASDAQ:INTU) & nCino (NASDAQ:NCNO)

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

Volatility and Risk

Intuit has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, nCino has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Insider and Institutional Ownership

83.7% of Intuit shares are held by institutional investors. Comparatively, 94.8% of nCino shares are held by institutional investors. 2.9% of Intuit shares are held by company insiders. Comparatively, 38.2% of nCino shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intuit	18.35%	17.51%	10.48%
nCino	-8.89%	0.31%	0.25%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Intuit and nCino, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intuit	0	4	18	0	2.82
nCino	0	5	7	0	2.58

Intuit currently has a consensus target price of $650.23, indicating a potential upside of 3.73%. nCino has a consensus target price of $35.91, indicating a potential upside of 16.55%. Given nCino’s higher possible upside, analysts clearly believe nCino is more favorable than Intuit.

Earnings & Valuation

This table compares Intuit and nCino’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intuit	$15.09 billion	11.63	$2.38 billion	$9.80	63.97
nCino	$476.54 million	7.38	-$42.35 million	($0.38)	-81.08

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

Summary

Intuit beats nCino on 11 of the 14 factors compared between the two stocks.

About Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.

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.