Financial Analysis: Perfect (NYSE:PERF) versus CLEAR Secure (NYSE:YOU)

Perfect (NYSE:PERF) and CLEAR Secure (NYSE:YOU) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Recommendations

This is a summary of recent ratings for Perfect and CLEAR Secure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perfect	1	2	0	0	1.67
CLEAR Secure	1	4	4	0	2.33

CLEAR Secure has a consensus target price of $58.29, suggesting a potential upside of 53.47%. Given CLEAR Secure’s stronger consensus rating and higher possible upside, analysts plainly believe CLEAR Secure is more favorable than Perfect.

Profitability

This table compares Perfect and CLEAR Secure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perfect	8.13%	3.73%	2.98%
CLEAR Secure	14.78%	71.51%	10.90%

Earnings and Valuation

This table compares Perfect and CLEAR Secure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect	$69.15 million	2.85	$4.64 million	$0.06	32.25
CLEAR Secure	$900.78 million	5.70	$109.17 million	$1.47	25.84

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

Volatility and Risk

Perfect has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, CLEAR Secure has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

73.8% of CLEAR Secure shares are held by institutional investors. 44.7% of Perfect shares are held by company insiders. Comparatively, 29.7% of CLEAR Secure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

CLEAR Secure beats Perfect on 12 of the 14 factors compared between the two stocks.

About Perfect

Perfect Corp. is a software as a service technology company, which engages in the business of developing makeup virtual try-on solutions. Its solutions include virtual try-ons for makeup, nail art, hairstyles, beard dye and styling, eyewear, jewelry, advanced skin diagnostic technology, foundation shade finder, and interactive artificial reality makeup application tutorial platform. Its brands include Estée Lauder, Clinique, MAC, e.l.e., benefit, Sally Hansen, Belcorp, Decorté, NARS, Aveda, Madisonreed, kate, Sofina iP, Jillstuart, Cosnova, Beekman, Marianna, Ardell, tarte, and Coffret D’or. It operates through the following geographical segments: United States, Japan, France, and Others. The company was founded by Alice H. Chang on February 13, 2015 and is headquartered in New Taipei, Taiwan.

About CLEAR Secure

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members. In addition, it provides RESERVE powered by CLEAR, a virtual queuing technology that provides users with the ability to book a dedicated time slot to go through security at the airport; CLEAR Verified, a B2B offering that extends secure identity platform to partners to create friction-free experiences for their customers; TSA PreCheck Enrollment Provided by CLEAR, as well as online renewal services; Atlas Certified, an automated solution to verify professional licenses and certification data across industries; and Sora ID that enables adding know your customer services to platform offerings, as well as virtual queuing technology that enables customers to manage lines. The company was founded in 2010 and is headquartered in New York, New York. Clear Secure, Inc. is a subsidiary of Alclear Investments, Llc.