VTEX (NYSE:VTEX – Get Free Report) and Temenos Group (OTCMKTS:TMSNY – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.
Insider & Institutional Ownership
63.7% of VTEX shares are held by institutional investors. 40.9% of VTEX shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares VTEX and Temenos Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VTEX | $240.52 million | 2.63 | $20.01 million | $0.16 | 23.16 |
| Temenos Group | $1.09 billion | 5.06 | $280.61 million | $2.83 | 28.46 |
Temenos Group has higher revenue and earnings than VTEX. VTEX is trading at a lower price-to-earnings ratio than Temenos Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for VTEX and Temenos Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VTEX | 0 | 6 | 3 | 0 | 2.33 |
| Temenos Group | 0 | 2 | 0 | 2 | 3.00 |
VTEX presently has a consensus price target of $4.69, indicating a potential upside of 26.52%. Given VTEX’s higher possible upside, analysts clearly believe VTEX is more favorable than Temenos Group.
Profitability
This table compares VTEX and Temenos Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VTEX | 11.98% | 12.98% | 8.76% |
| Temenos Group | 17.50% | 55.57% | 10.62% |
Volatility and Risk
VTEX has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Temenos Group has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Summary
Temenos Group beats VTEX on 10 of the 15 factors compared between the two stocks.
About VTEX
VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.
About Temenos Group
Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.
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