Elcom International (OTCMKTS:ELCO) & HashiCorp (NASDAQ:HCP) Critical Contrast

Elcom International (OTCMKTS:ELCO) and HashiCorp (NASDAQ:HCP) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Elcom International and HashiCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elcom International	N/A	N/A	N/A
HashiCorp	-31.13%	-14.27%	-10.51%

Institutional & Insider Ownership

87.8% of HashiCorp shares are owned by institutional investors. 13.6% of Elcom International shares are owned by insiders. Comparatively, 22.5% of HashiCorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Elcom International and HashiCorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elcom International	0	0	0	0	N/A
HashiCorp	0	11	3	0	2.21

HashiCorp has a consensus price target of $31.17, indicating a potential downside of 7.02%. Given HashiCorp’s higher possible upside, analysts plainly believe HashiCorp is more favorable than Elcom International.

Earnings & Valuation

This table compares Elcom International and HashiCorp’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elcom International	N/A	N/A	N/A	N/A	N/A
HashiCorp	$605.73 million	11.13	-$190.67 million	($0.96)	-34.92

Elcom International has higher earnings, but lower revenue than HashiCorp.

Volatility & Risk

Elcom International has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, HashiCorp has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Summary

HashiCorp beats Elcom International on 6 of the 9 factors compared between the two stocks.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom's PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.

About HashiCorp

HashiCorp, Inc. engages in the provision of multi-cloud infrastructure automation solutions worldwide. The company offers infrastructure provisioning products, including Terraform, that enables IT operations teams to apply an Infrastructure-as-Code approach, where processes and configuration required to support applications are codified and automated instead of being manual and ticket-based; Packer, that provides a consistent way to define the process of transforming the raw source inputs into a production worthy artifact, across any environment or packaging format; and Vagrant, that allows teams to define how development environments are set up. It also provides security products, such as Vault, a secrets management and data protection product, which enables security teams to apply policies based on application and user identity to govern access to credentials and secure sensitive data; and Boundary, that applies an identity-based approach to privileged access management and unifies the controls to a single system. In addition, the company offers Consul, an application-centric networking automation product that enables practitioners to manage application traffic, security teams to secure and restrict access between applications, and operations teams to automate the underlying network infrastructure; Nomad, a scheduler and workload orchestrator, which provides practitioners with a self-service interface to manage the application lifecycle; and Waypoint, an application delivery product that provides a developer-focused workflow for the build, deploy, and release process. Further, it provides HashiCorp Cloud Platform, a fully-managed cloud platform for multiple products to accelerate enterprise cloud migration by addressing resource and skills gaps, improving operational efficiency, and speeding up deployment time for customers. The company was incorporated in 2012 and is headquartered in San Francisco, California.