Procore Technologies (NYSE:PCOR) & Braze (NASDAQ:BRZE) Critical Review

Procore Technologies (NYSE:PCOR) and Braze (NASDAQ:BRZE) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Insider & Institutional Ownership

81.1% of Procore Technologies shares are owned by institutional investors. Comparatively, 90.5% of Braze shares are owned by institutional investors. 21.5% of Procore Technologies shares are owned by insiders. Comparatively, 18.2% of Braze shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Procore Technologies and Braze’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procore Technologies	-11.58%	-7.66%	-4.72%
Braze	-16.62%	-17.97%	-9.95%

Analyst Ratings

This is a summary of current ratings and recommmendations for Procore Technologies and Braze, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procore Technologies	1	6	15	0	2.64
Braze	1	1	19	0	2.86

Procore Technologies currently has a consensus target price of $84.37, suggesting a potential upside of 3.48%. Braze has a consensus target price of $45.11, suggesting a potential upside of 66.74%. Given Braze’s stronger consensus rating and higher probable upside, analysts plainly believe Braze is more favorable than Procore Technologies.

Earnings and Valuation

This table compares Procore Technologies and Braze”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procore Technologies	$1.15 billion	10.63	-$105.96 million	($0.96)	-84.93
Braze	$593.41 million	5.07	-$103.74 million	($1.04)	-26.01

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

Risk and Volatility

Procore Technologies has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Braze has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

About Procore Technologies

Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Workforce Management, that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time; and Construction Intelligence, that allows customers to capture, manage, and learn from data for project and portfolio reporting, analytics, and artificial intelligence-guided workflows, as well as to monitor projects and drive informed decision-making for business needs. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.

About Braze

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.