Unity Software (NYSE:U) vs. Riskified (NYSE:RSKD) Head to Head Contrast

Unity Software (NYSE:U) and Riskified (NYSE:RSKD) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Unity Software and Riskified, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unity Software	2	8	12	2	2.58
Riskified	2	3	3	0	2.13

Unity Software currently has a consensus target price of $45.27, indicating a potential upside of 10.51%. Riskified has a consensus target price of $5.89, indicating a potential upside of 27.14%. Given Riskified’s higher possible upside, analysts plainly believe Riskified is more favorable than Unity Software.

Risk and Volatility

Unity Software has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Riskified has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares Unity Software and Riskified’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unity Software	-24.15%	-9.45%	-4.50%
Riskified	-11.04%	-8.12%	-6.22%

Insider and Institutional Ownership

73.5% of Unity Software shares are held by institutional investors. Comparatively, 59.0% of Riskified shares are held by institutional investors. 3.6% of Unity Software shares are held by insiders. Comparatively, 17.4% of Riskified shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Unity Software and Riskified”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unity Software	$1.81 billion	9.67	-$664.11 million	($1.05)	-39.01
Riskified	$327.52 million	2.28	-$34.92 million	($0.23)	-20.15

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

Summary

Unity Software beats Riskified on 8 of the 15 factors compared between the two stocks.

About Unity Software

Unity Software Inc. operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide. The company was founded in 2004 and is headquartered in San Francisco, California.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.