Contrasting Pony AI (NASDAQ:PONY) & BILL (NYSE:BILL)

BILL (NYSE:BILL) and Pony AI (NASDAQ:PONY) are both mid-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings & Valuation

This table compares BILL and Pony AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BILL	$1.65 billion	2.29	-$11.24 million	($0.13)	-341.00
Pony AI	$90.00 million	33.26	-$133.97 million	($0.36)	-19.14

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

Profitability

This table compares BILL and Pony AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BILL	-0.68%	3.74%	1.39%
Pony AI	-118.47%	-14.86%	-13.97%

Volatility & Risk

BILL has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Pony AI has a beta of 3.87, indicating that its share price is 287% more volatile than the S&P 500.

Insider & Institutional Ownership

98.0% of BILL shares are held by institutional investors. 13.2% of BILL shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for BILL and Pony AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BILL	1	6	12	1	2.65
Pony AI	1	2	7	0	2.60

BILL presently has a consensus price target of $58.67, suggesting a potential upside of 32.34%. Pony AI has a consensus price target of $19.57, suggesting a potential upside of 184.11%. Given Pony AI’s higher possible upside, analysts plainly believe Pony AI is more favorable than BILL.

Summary

BILL beats Pony AI on 11 of the 15 factors compared between the two stocks.

About BILL

BILL Holdings, Inc. provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. In addition, the company's artificial intelligence enabled software provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.