AvePoint (NASDAQ:AVPT – Get Rating) and Clearwater Analytics (NYSE:CWAN – Get Rating) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Volatility & Risk
AvePoint has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Clearwater Analytics has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
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Analyst Ratings
This is a breakdown of current recommendations for AvePoint and Clearwater Analytics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| AvePoint | 0 | 2 | 1 | 0 | 2.33 |
| Clearwater Analytics | 1 | 2 | 5 | 0 | 2.50 |
AvePoint presently has a consensus target price of $6.75, indicating a potential upside of 63.83%. Clearwater Analytics has a consensus target price of $18.71, indicating a potential upside of 1.99%. Given AvePoint's higher probable upside, research analysts clearly believe AvePoint is more favorable than Clearwater Analytics.
Insider and Institutional Ownership
41.4% of AvePoint shares are held by institutional investors. Comparatively, 39.1% of Clearwater Analytics shares are held by institutional investors. 24.7% of AvePoint shares are held by company insiders. Comparatively, 0.3% of Clearwater Analytics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares AvePoint and Clearwater Analytics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| AvePoint | -16.61% | -16.67% | -10.30% |
| Clearwater Analytics | -1.69% | 1.00% | 0.75% |
Earnings and Valuation
This table compares AvePoint and Clearwater Analytics' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| AvePoint | $191.91 million | 3.92 | -$33.24 million | ($0.19) | -21.68 |
| Clearwater Analytics | $252.02 million | 17.35 | -$8.21 million | ($0.02) | -917.50 |
Clearwater Analytics has higher revenue and earnings than AvePoint. Clearwater Analytics is trading at a lower price-to-earnings ratio than AvePoint, indicating that it is currently the more affordable of the two stocks.
Summary
Clearwater Analytics beats AvePoint on 9 of the 14 factors compared between the two stocks.
About AvePoint
(Get Rating)
AvePoint, Inc. provides Microsoft 365 data management solutions worldwide. It offers SaaS platform cloud-hosted collaboration systems by providing suite of software products. The company focuses on data protection, governance, compliance management extensions for Microsoft 365, Dynamics 365, Salesforce, and Google Workspace. In addition, the company offers software solutions for Microsoft 365, including microsoft teams, sharepoint online, exchange online, onedrive, project online, planner, yammer and other public folders. The company was incorporated in 2001 and is headquartered in Jersey City, New Jersey.
About Clearwater Analytics
(Get Rating)
Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities. The company offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. Its Clearwater Prism solution enables self-service access to data feeds from accounting, compliance, performance, and risk systems, including those offered by the company and other third-party software vendors, as well as provides flexible reporting to various users. The company was incorporated in 2021 and is headquartered in Boise, Idaho.
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