Bentley Systems (NASDAQ:BSY – Get Free Report) and Stem (NYSE:STEM – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
44.2% of Bentley Systems shares are owned by institutional investors. Comparatively, 61.6% of Stem shares are owned by institutional investors. 20.3% of Bentley Systems shares are owned by insiders. Comparatively, 5.1% of Stem shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Bentley Systems has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Stem has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Bentley Systems and Stem, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bentley Systems | 0 | 5 | 10 | 0 | 2.67 |
| Stem | 1 | 4 | 1 | 0 | 2.00 |
Bentley Systems currently has a consensus target price of $44.77, suggesting a potential upside of 12.77%. Stem has a consensus target price of $6.54, suggesting a potential upside of 116.76%. Given Stem’s higher possible upside, analysts clearly believe Stem is more favorable than Bentley Systems.
Profitability
This table compares Bentley Systems and Stem’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bentley Systems | 18.10% | 28.43% | 9.69% |
| Stem | -49.37% | N/A | -21.85% |
Earnings & Valuation
This table compares Bentley Systems and Stem”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bentley Systems | $1.50 billion | 7.68 | $277.86 million | $0.91 | 43.63 |
| Stem | $156.27 million | 0.19 | $137.76 million | ($8.49) | -0.36 |
Bentley Systems has higher revenue and earnings than Stem. Stem is trading at a lower price-to-earnings ratio than Bentley Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Bentley Systems beats Stem on 11 of the 14 factors compared between the two stocks.
About Bentley Systems
Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling engineering applications, such as MicroStation, OpenBridge, OpenBuildings, OpenCities, OpenComms, OpenFlows, OpenPlant, OpenRail, OpenRoads, OpenSite, OpenTower, OpenTunnel, OpenUtilities, and OpenWindowPower; and open simulation engineering applications, including ADINA, AutoPIPE, CUBE, DYNAMEQ, EMME, LEGION, Power Line Systems, RAM, SACS, SPIDA, and STAAD; and geoprofessional applications for modeling and simulation of near and deep subsurface conditions, including AGS, Central, GeoStudio, Imago, Leapfrog, MX Deposit, Oasis montaj, OpenGround, and PLAXIS. It also provides infrastructure cloud applications, such as ProjectWise, SYNCHRO, and AssetWise, as well as iTwin platform that enables users to create and curate cloud native 4D/5D digital representations of physical infrastructure assets consisting of iTwin Capture, iTwin Experience, and iTwin IoT platforms. The company serves civil, structural, geotechnical, subsurface, process engineers, architects, geospatial professionals, city and regional planners, contractors, fabricators, and operations and maintenance engineers. Bentley Systems, Incorporated was incorporated in 1984 and is headquartered in Exton, Pennsylvania.
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.
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