Head to Head Analysis: AvePoint (NASDAQ:AVPT) & Stem (NYSE:STEM)

Stem (NYSE:STEM) and AvePoint (NASDAQ:AVPT) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider & Institutional Ownership

61.6% of Stem shares are held by institutional investors. Comparatively, 44.5% of AvePoint shares are held by institutional investors. 5.1% of Stem shares are held by company insiders. Comparatively, 22.7% of AvePoint shares are held by company 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.

Profitability

This table compares Stem and AvePoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stem	-49.37%	N/A	-21.85%
AvePoint	15.33%	15.97%	9.62%

Earnings and Valuation

This table compares Stem and AvePoint”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stem	$156.27 million	0.28	$137.76 million	($8.49)	-0.53
AvePoint	$419.50 million	6.56	$34.80 million	$0.32	40.62

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

Volatility & Risk

Stem has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, AvePoint has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Stem and AvePoint, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stem	1	3	1	0	2.00
AvePoint	0	6	10	0	2.62

Stem currently has a consensus price target of $7.45, suggesting a potential upside of 64.79%. AvePoint has a consensus price target of $16.36, suggesting a potential upside of 25.83%. Given Stem’s higher probable upside, equities analysts plainly believe Stem is more favorable than AvePoint.

Summary

AvePoint beats Stem on 10 of the 14 factors compared between the two stocks.

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.

About AvePoint

AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.