Analyzing Expensify (NASDAQ:EXFY) and GitLab (NASDAQ:GTLB)

GitLab (NASDAQ:GTLB) and Expensify (NASDAQ:EXFY) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Volatility & Risk

GitLab has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Expensify has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Profitability

This table compares GitLab and Expensify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GitLab	-4.99%	-1.28%	-0.77%
Expensify	-11.31%	-11.54%	-8.34%

Analyst Recommendations

This is a summary of current recommendations and price targets for GitLab and Expensify, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GitLab	4	17	7	0	2.11
Expensify	1	0	2	0	2.33

GitLab currently has a consensus price target of $51.75, indicating a potential downside of 7.49%. Expensify has a consensus price target of $3.00, indicating a potential upside of 18.58%. Given Expensify’s stronger consensus rating and higher probable upside, analysts clearly believe Expensify is more favorable than GitLab.

Institutional and Insider Ownership

95.0% of GitLab shares are held by institutional investors. Comparatively, 68.4% of Expensify shares are held by institutional investors. 10.6% of GitLab shares are held by company insiders. Comparatively, 11.7% of Expensify shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares GitLab and Expensify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GitLab	$1.06 billion	8.83	-$55.96 million	($0.32)	-174.81
Expensify	$138.10 million	1.45	-$21.39 million	($0.17)	-14.88

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

About GitLab

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.