Coupa Software (NASDAQ:COUP) and CrowdStrike (NASDAQ:CRWD) are both large-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Coupa Software and CrowdStrike's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Coupa Software | -29.17% | -12.12% | -2.80% |
| CrowdStrike | -13.40% | -12.79% | -6.31% |
Insider & Institutional Ownership
60.0% of CrowdStrike shares are held by institutional investors. 3.4% of Coupa Software shares are held by insiders. Comparatively, 11.3% of CrowdStrike shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Coupa Software and CrowdStrike's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Coupa Software | $389.72 million | 64.13 | $-90,830,000.00 | ($0.67) | -516.81 |
| CrowdStrike | $481.41 million | 99.28 | $-141,780,000.00 | ($0.97) | -222.68 |
Coupa Software has higher earnings, but lower revenue than CrowdStrike. Coupa Software is trading at a lower price-to-earnings ratio than CrowdStrike, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Coupa Software and CrowdStrike, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Coupa Software | 1 | 8 | 13 | 0 | 2.55 |
| CrowdStrike | 0 | 4 | 19 | 0 | 2.83 |
Coupa Software currently has a consensus target price of $315.00, indicating a potential downside of 9.03%. CrowdStrike has a consensus target price of $211.5417, indicating a potential downside of 2.06%. Given CrowdStrike's stronger consensus rating and higher probable upside, analysts clearly believe CrowdStrike is more favorable than Coupa Software.
Risk and Volatility
Coupa Software has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, CrowdStrike has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
Summary
CrowdStrike beats Coupa Software on 8 of the 14 factors compared between the two stocks.
