Reviewing VTEX (NYSE:VTEX) and Kaltura (NASDAQ:KLTR)

VTEX (NYSE:VTEX) and Kaltura (NASDAQ:KLTR) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Institutional & Insider Ownership

63.7% of VTEX shares are owned by institutional investors. Comparatively, 30.8% of Kaltura shares are owned by institutional investors. 40.9% of VTEX shares are owned by insiders. Comparatively, 16.3% of Kaltura shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VTEX	9.40%	9.68%	6.60%
Kaltura	-8.25%	-35.91%	-2.46%

Earnings and Valuation

This table compares VTEX and Kaltura”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VTEX	$240.52 million	2.62	$20.01 million	$0.12	30.80
Kaltura	$180.85 million	1.06	-$12.07 million	($0.10)	-12.80

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

Analyst Recommendations

This is a summary of current recommendations for VTEX and Kaltura, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VTEX	0	3	3	0	2.50
Kaltura	1	0	1	0	2.00

VTEX currently has a consensus price target of $5.18, indicating a potential upside of 40.15%. Kaltura has a consensus price target of $3.00, indicating a potential upside of 134.38%. Given Kaltura’s higher possible upside, analysts plainly believe Kaltura is more favorable than VTEX.

Volatility & Risk

VTEX has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Kaltura has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Summary

VTEX beats Kaltura on 12 of the 14 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 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.