2U (TWOU) Competitors

2U (NASDAQ:TWOU) and Cognyte Software (NASDAQ:CGNT) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, media sentiment, dividends, valuation, risk, community ranking, profitability, earnings and analyst recommendations.

Does the MarketBeat Community prefer TWOU or CGNT?

2U received 415 more outperform votes than Cognyte Software when rated by MarketBeat users. Likewise, 73.92% of users gave 2U an outperform vote while only 56.82% of users gave Cognyte Software an outperform vote.

Company	Underperform	Outperform
2U	Outperform Votes 615 73.92%	Underperform Votes 217 26.08%
Cognyte Software	Outperform Votes 200 56.82%	Underperform Votes 152 43.18%

Do analysts prefer TWOU or CGNT?

2U currently has a consensus target price of $10.67, suggesting a potential upside of 185.37%. Cognyte Software has a consensus target price of $3.00, suggesting a potential downside of 38.02%. Given 2U's stronger consensus rating and higher probable upside, equities research analysts plainly believe 2U is more favorable than Cognyte Software.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
2U	0 Sell rating(s)	4 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.56
Cognyte Software	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Which has better earnings and valuation, TWOU or CGNT?

Cognyte Software has lower revenue, but higher earnings than 2U. Cognyte Software is trading at a lower price-to-earnings ratio than 2U, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
2U	$963.08 million	0.31	-$322.15 million	-$3.22	-1.16
Cognyte Software	$312.06 million	1.07	-$114.13 million	-$1.69	-2.86

Do institutionals and insiders believe in TWOU or CGNT?

84.9% of Cognyte Software shares are owned by institutional investors. 4.8% of 2U 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.

Which has more risk & volatility, TWOU or CGNT?

2U has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Cognyte Software has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Is TWOU or CGNT more profitable?

2U has a net margin of -26.41% compared to Cognyte Software's net margin of -36.57%. 2U's return on equity of -13.75% beat Cognyte Software's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
2U	-26.41%	-13.75%	-3.79%
Cognyte Software	-36.57%	-55.52%	-26.16%

Does the media favor TWOU or CGNT?

In the previous week, 2U had 3 more articles in the media than Cognyte Software. MarketBeat recorded 5 mentions for 2U and 2 mentions for Cognyte Software. 2U's average media sentiment score of 1.77 beat Cognyte Software's score of 1.44 indicating that 2U is being referred to more favorably in the media.

Company	Overall Sentiment
2U	Very Positive
Cognyte Software	Positive

Summary

2U beats Cognyte Software on 13 of the 18 factors compared between the two stocks.