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Head to Head Comparison: Asana (NYSE:ASAN) Vs. Squarespace (NYSE:SQSP)

Financial News Live ·  Jan 27, 2023 21:12

Asana (NYSE:ASAN – Get Rating) and Squarespace (NYSE:SQSP – Get Rating) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Risk & Volatility

Asana has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Squarespace has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.

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Institutional and Insider Ownership

28.2% of Asana shares are held by institutional investors. Comparatively, 40.9% of Squarespace shares are held by institutional investors. 61.9% of Asana shares are held by insiders. Comparatively, 45.5% of Squarespace shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Asana and Squarespace's net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets
Asana -79.14% -190.24% -53.87%
Squarespace -4.09% N/A -3.59%

Valuation & Earnings

This table compares Asana and Squarespace's top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Asana $378.44 million 8.74 -$288.34 million ($2.08) -7.47
Squarespace $784.04 million 4.08 -$249.15 million N/A N/A

Squarespace has higher revenue and earnings than Asana.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Asana and Squarespace, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Asana 2 8 3 0 2.08
Squarespace 0 9 5 0 2.36

Asana presently has a consensus target price of $21.77, suggesting a potential upside of 40.08%. Squarespace has a consensus target price of $25.00, suggesting a potential upside of 6.97%. Given Asana's higher probable upside, research analysts clearly believe Asana is more favorable than Squarespace.

Summary

Squarespace beats Asana on 8 of the 12 factors compared between the two stocks.

About Asana

(Get Rating)

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. The company's platform enables teams to orchestrate work from daily tasks to cross-functional strategic initiatives; and manages product launches, marketing campaigns, and organization-wide goal settings. It serves customers in industries, such as technology, retail, education, non-profit, government, healthcare, media, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About Squarespace

(Get Rating)

Squarespace, Inc. operates platform for businesses and independent creators to build online presence, grow their brands, and manage their businesses across the internet. Its suite of integrated products enables users to manage their projects and businesses through websites, domains, e-commerce, marketing tools, and scheduling, as well as tools for managing a social media presence. It serves small and medium-sized businesses, and independent creators, such as restaurants, photographers, wedding planners, artists, musicians, and bloggers. Squarespace, Inc. was founded in 2003 and is headquartered in New York, New York.

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