TaskUs (NASDAQ:TASK – Get Free Report) and Stem (NYSE:STEM – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Volatility & Risk
TaskUs has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, Stem has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for TaskUs and Stem, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TaskUs | 1 | 6 | 1 | 1 | 2.22 |
| Stem | 1 | 4 | 0 | 0 | 1.80 |
Earnings & Valuation
This table compares TaskUs and Stem”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TaskUs | $1.18 billion | 0.57 | $102.28 million | $1.11 | 6.68 |
| Stem | $156.27 million | 0.59 | $137.76 million | ($9.48) | -1.14 |
Stem has lower revenue, but higher earnings than TaskUs. Stem is trading at a lower price-to-earnings ratio than TaskUs, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TaskUs and Stem’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TaskUs | 8.64% | 22.52% | 12.29% |
| Stem | 88.16% | N/A | -22.61% |
Insider and Institutional Ownership
44.6% of TaskUs shares are held by institutional investors. Comparatively, 61.6% of Stem shares are held by institutional investors. 30.6% of TaskUs shares are held by insiders. Comparatively, 5.1% of Stem shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
TaskUs beats Stem on 11 of the 15 factors compared between the two stocks.
About TaskUs
TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.
About Stem
Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.
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