Analyzing Tyler Technologies (NYSE:TYL) & Tuya (NYSE:TUYA)

Tyler Technologies (NYSE:TYL) and Tuya (NYSE:TUYA) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Valuation & Earnings

This table compares Tyler Technologies and Tuya”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tyler Technologies	$2.33 billion	6.12	$315.60 million	$7.54	46.21
Tuya	$321.79 million	2.98	$57.89 million	$0.11	16.05

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

Volatility & Risk

Tyler Technologies has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Tuya has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Insider and Institutional Ownership

93.3% of Tyler Technologies shares are held by institutional investors. Comparatively, 11.5% of Tuya shares are held by institutional investors. 1.1% of Tyler Technologies shares are held by company insiders. Comparatively, 2.1% of Tuya shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Tyler Technologies and Tuya, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tyler Technologies	1	3	13	1	2.78
Tuya	0	1	1	0	2.50

Tyler Technologies presently has a consensus price target of $456.72, suggesting a potential upside of 31.09%. Tuya has a consensus price target of $3.69, suggesting a potential upside of 109.07%. Given Tuya’s higher possible upside, analysts plainly believe Tuya is more favorable than Tyler Technologies.

Profitability

This table compares Tyler Technologies and Tuya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tyler Technologies	13.36%	11.15%	7.14%
Tuya	20.16%	6.74%	5.96%

Summary

Tyler Technologies beats Tuya on 12 of the 15 factors compared between the two stocks.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.