Financial Analysis: Intuit (NASDAQ:INTU) & Tuya (NYSE:TUYA)

Tuya (NYSE:TUYA) and Intuit (NASDAQ:INTU) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tuya	20.16%	6.74%	5.96%
Intuit	21.29%	25.97%	14.11%

Institutional & Insider Ownership

11.5% of Tuya shares are held by institutional investors. Comparatively, 83.7% of Intuit shares are held by institutional investors. 2.1% of Tuya shares are held by insiders. Comparatively, 2.5% of Intuit shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Tuya and Intuit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$321.79 million	2.89	$57.89 million	$0.11	15.55
Intuit	$21.45 billion	3.44	$4.57 billion	$16.50	16.71

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tuya and Intuit, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	1	1	0	2.50
Intuit	3	12	16	0	2.42

Tuya presently has a consensus price target of $3.69, suggesting a potential upside of 115.66%. Intuit has a consensus price target of $431.55, suggesting a potential upside of 56.52%. Given Tuya’s stronger consensus rating and higher probable upside, equities analysts clearly believe Tuya is more favorable than Intuit.

Risk and Volatility

Tuya has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Intuit has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Summary

Intuit beats Tuya on 12 of the 14 factors compared between the two stocks.

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.

About Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.