Comparing Clearwater Analytics (NYSE:CWAN) and Hello Group (NASDAQ:MOMO)

Clearwater Analytics (NYSE:CWAN) and Hello Group (NASDAQ:MOMO) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Institutional & Insider Ownership

50.1% of Clearwater Analytics shares are owned by institutional investors. Comparatively, 51.0% of Hello Group shares are owned by institutional investors. 4.6% of Clearwater Analytics shares are owned by company insiders. Comparatively, 61.4% of Hello Group shares are owned by company 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.

Valuation and Earnings

This table compares Clearwater Analytics and Hello Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Analytics	$451.80 million	17.02	-$21.63 million	$1.66	18.75
Hello Group	$10.93 billion	0.10	$275.72 million	$0.97	7.60

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

Analyst Recommendations

This is a summary of recent ratings for Clearwater Analytics and Hello Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Analytics	1	0	9	0	2.80
Hello Group	2	2	2	0	2.00

Clearwater Analytics presently has a consensus target price of $33.80, indicating a potential upside of 8.58%. Hello Group has a consensus target price of $8.25, indicating a potential upside of 11.94%. Given Hello Group’s higher possible upside, analysts plainly believe Hello Group is more favorable than Clearwater Analytics.

Profitability

This table compares Clearwater Analytics and Hello Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearwater Analytics	93.97%	7.11%	5.21%
Hello Group	11.98%	11.41%	7.51%

Risk & Volatility

Clearwater Analytics has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.