Comparing Yext (NYSE:YEXT) & CommVault Systems (NASDAQ:CVLT)

Yext (NYSE:YEXT) and CommVault Systems (NASDAQ:CVLT) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Risk & Volatility

Yext has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, CommVault Systems has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Institutional and Insider Ownership

71.0% of Yext shares are owned by institutional investors. Comparatively, 93.5% of CommVault Systems shares are owned by institutional investors. 7.8% of Yext shares are owned by insiders. Comparatively, 0.9% of CommVault Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Yext and CommVault Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$443.02 million	1.71	$37.87 million	$0.17	44.97
CommVault Systems	$1.18 billion	5.87	$70.66 million	$1.93	88.05

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

Profitability

This table compares Yext and CommVault Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	5.90%	43.23%	7.50%
CommVault Systems	6.60%	169.40%	6.36%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Yext and CommVault Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	0	5	0	0	2.00
CommVault Systems	0	10	10	1	2.57

Yext currently has a consensus price target of $6.33, suggesting a potential downside of 17.16%. CommVault Systems has a consensus price target of $174.00, suggesting a potential upside of 2.39%. Given CommVault Systems’ stronger consensus rating and higher probable upside, analysts plainly believe CommVault Systems is more favorable than Yext.

Summary

CommVault Systems beats Yext on 12 of the 15 factors compared between the two stocks.

About Yext

Yext, Inc. provides software that helps businesses manage their digital presence and the information customers find about them online. Its platform enables organizations to maintain consistent business details, such as locations, hours and services, across websites, search engines, maps, directories and other digital services. Yext’s offerings include tools for managing online listings, business websites and pages, customer reviews, social media content and site search. The company also provides analytics to help organizations understand how people engage with their digital information.

About CommVault Systems

Commvault Systems, which operates as Commvault, develops data protection and cyber resilience software for businesses and other organizations. Its offerings help customers back up, recover, manage and secure data across on-premises systems, public clouds and hybrid environments. The company’s Commvault Cloud platform and related services support data recovery, cyberattack readiness and data management. Its tools are designed to help organizations protect information across different workloads and storage environments.