Critical Contrast: Kaltura (NASDAQ:KLTR) & Elastic (NYSE:ESTC)

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

Analyst Ratings

This is a breakdown of recent recommendations for Kaltura and Elastic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaltura	2	0	1	0	1.67
Elastic	1	11	18	1	2.61

Kaltura currently has a consensus target price of $2.25, indicating a potential upside of 40.63%. Elastic has a consensus target price of $119.00, indicating a potential upside of 37.10%. Given Kaltura’s higher possible upside, equities analysts clearly believe Kaltura is more favorable than Elastic.

Institutional and Insider Ownership

30.8% of Kaltura shares are owned by institutional investors. Comparatively, 97.0% of Elastic shares are owned by institutional investors. 13.5% of Kaltura shares are owned by company insiders. Comparatively, 12.7% of Elastic shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Kaltura has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Elastic has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kaltura and Elastic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaltura	$178.72 million	1.38	-$31.32 million	($0.12)	-13.33
Elastic	$1.48 billion	6.22	-$108.11 million	($0.80)	-108.50

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

Profitability

This table compares Kaltura and Elastic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kaltura	-10.52%	-57.20%	-7.18%
Elastic	-5.38%	-1.68%	-0.62%

Summary

Elastic beats Kaltura on 10 of the 15 factors compared between the two stocks.

About Kaltura

Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About Elastic

Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data. The company's Elastic Stack product portfolio comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Elastic Agent that offers integrated host protection and central management services; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems from a multitude of sources simultaneously. It also provides software solutions on the Elastic Stack that address cases, including search applications, workplace search, logs, metrics, application performance monitoring, synthetic monitoring, security information and event management (SIEM), endpoint security, extended detection and response, and cloud security. The company was incorporated in 2012 and is based in Amsterdam, the Netherlands.