Confluent (NASDAQ:CFLT – Get Free Report) and Agora (NASDAQ:API – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Confluent and Agora, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Confluent | 1 | 8 | 16 | 0 | 2.60 |
| Agora | 0 | 1 | 0 | 0 | 2.00 |
Confluent currently has a consensus target price of $30.64, indicating a potential upside of 10.77%. Agora has a consensus target price of $3.20, indicating a potential upside of 32.78%. Given Agora’s higher probable upside, analysts plainly believe Agora is more favorable than Confluent.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Confluent | -56.99% | -44.16% | -14.52% |
| Agora | -61.62% | -13.65% | -12.47% |
Valuation and Earnings
This table compares Confluent and Agora’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Confluent | $776.95 million | 11.13 | -$442.75 million | ($1.47) | -18.82 |
| Agora | $141.54 million | 1.83 | -$87.22 million | ($0.87) | -2.77 |
Agora has lower revenue, but higher earnings than Confluent. Confluent is trading at a lower price-to-earnings ratio than Agora, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
78.1% of Confluent shares are held by institutional investors. Comparatively, 40.4% of Agora shares are held by institutional investors. 22.1% of Confluent shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Confluent has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Agora has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.
Summary
Confluent beats Agora on 8 of the 14 factors compared between the two stocks.
About Confluent
Confluent, Inc. operates a data streaming platform in the United States and internationally. The company provides platforms that allow customers to connect their applications, systems, and data layers, such as Confluent Cloud, a managed cloud-native software-as-a-service; and Confluent Platform, an enterprise-grade self-managed software. It offers connectors for existing applications, and IT and cloud infrastructure; Apache Flink services that allows teams to create reusable data streams that can be delivered real-time; ksqlDB, a data-in-motion database that allows users to build data-in-motion applications using a few SQL statements; stream governance, a managed data governance suite that is designed for the intricacies of streaming data, which allows teams to accelerate data streaming initiatives without bypassing controls for risk management and regulatory compliance; and stream designer which builds streaming data pipelines visually. In addition, the company offers professional services comprising packaged and residency offerings; education offerings consisting of instructor-led and self-paced training and certification guidance, technical resources, and access to hands-on training and certification exams; and certification programs. It serves banking and financial services industries, as well as retail and e-commerce, manufacturing, automotive, communication service providers, gaming, public sector, insurance, and technology industries. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.
About Agora
Agora, Inc. provides real-time engagement platform-as-a-service (RTE-PaaS) in the People's Republic of China, the United States, and internationally. The company's RTE-PaaS offers developers with software tools to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence functionalities. Its products include video calling, voice calling, interactive live streaming, chat, and signaling; and extensions, which comprise interactive whiteboard, recording, 3D spatial audio, AI noise suppression, analytics, and extensions marketplace products to enable developers to launch RTE in specific use cases. The company also provides Flexible Classroom that offers a low-code application platform as a service; and App Builder, a no-code application platform. Its real-time engagement products are delivered through its software-defined real-time network, which is a virtual network overlay on top of the public internet. The company serves social, entertainment, gaming, education, enterprise solutions, e-commerce, financial services, healthcare, and IoT industries. Agora, Inc. was incorporated in 2013 and is based in Shanghai, the People's Republic of China.
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