Contrasting Yext (NYSE:YEXT) & HeartCore Enterprises (NASDAQ:HTCR)

HeartCore Enterprises (NASDAQ:HTCR) and Yext (NYSE:YEXT) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Earnings and Valuation

This table compares HeartCore Enterprises and Yext”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartCore Enterprises	$8.97 million	0.22	$5.79 million	($4.21)	-0.31
Yext	$443.02 million	1.75	$37.87 million	$0.17	46.21

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

Profitability

This table compares HeartCore Enterprises and Yext’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HeartCore Enterprises	15.42%	-138.90%	-53.97%
Yext	5.90%	43.23%	7.50%

Analyst Ratings

This is a breakdown of recent ratings and price targets for HeartCore Enterprises and Yext, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartCore Enterprises	1	0	0	0	1.00
Yext	0	5	0	0	2.00

Yext has a consensus target price of $6.33, indicating a potential downside of 19.37%. Given Yext’s stronger consensus rating and higher probable upside, analysts plainly believe Yext is more favorable than HeartCore Enterprises.

Institutional & Insider Ownership

1.7% of HeartCore Enterprises shares are held by institutional investors. Comparatively, 71.0% of Yext shares are held by institutional investors. 36.1% of HeartCore Enterprises shares are held by insiders. Comparatively, 7.8% of Yext shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

HeartCore Enterprises has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Yext has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Summary

Yext beats HeartCore Enterprises on 10 of the 13 factors compared between the two stocks.

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.