nCino (NASDAQ:NCNO – Get Free Report) and Waystar (NASDAQ:WAY – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Profitability
This table compares nCino and Waystar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| nCino | 0.87% | 4.75% | 3.10% |
| Waystar | 10.90% | 6.99% | 4.72% |
Insider and Institutional Ownership
94.8% of nCino shares are owned by institutional investors. 1.9% of nCino shares are owned by company insiders. Comparatively, 3.5% of Waystar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| nCino | $594.78 million | 2.78 | $5.18 million | $0.05 | 303.80 |
| Waystar | $1.10 billion | 3.33 | $112.09 million | $0.67 | 28.45 |
Waystar has higher revenue and earnings than nCino. Waystar is trading at a lower price-to-earnings ratio than nCino, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for nCino and Waystar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nCino | 1 | 5 | 11 | 2 | 2.74 |
| Waystar | 0 | 3 | 17 | 3 | 3.00 |
nCino currently has a consensus price target of $25.21, suggesting a potential upside of 65.99%. Waystar has a consensus price target of $35.62, suggesting a potential upside of 86.88%. Given Waystar’s stronger consensus rating and higher possible upside, analysts plainly believe Waystar is more favorable than nCino.
Risk and Volatility
nCino has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Waystar has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.
Summary
Waystar beats nCino on 12 of the 15 factors compared between the two stocks.
About nCino
nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.
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