Contrasting Temenos Group (OTCMKTS:TMSNY) and Okta (NASDAQ:OKTA)

Temenos Group (OTCMKTS:TMSNY) and Okta (NASDAQ:OKTA) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

86.6% of Okta shares are owned by institutional investors. 4.6% of Okta shares are owned by company 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.

Profitability

This table compares Temenos Group and Okta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Temenos Group	18.64%	65.48%	12.48%
Okta	9.63%	4.50%	3.34%

Valuation & Earnings

This table compares Temenos Group and Okta”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Temenos Group	$1.09 billion	5.96	$280.61 million	$3.12	30.40
Okta	$2.92 billion	10.93	$235.00 million	$1.66	109.96

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

Volatility & Risk

Temenos Group has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Okta has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Temenos Group and Okta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Temenos Group	0	2	0	2	3.00
Okta	0	10	31	2	2.81

Okta has a consensus target price of $202.38, indicating a potential upside of 10.87%. Given Okta’s higher probable upside, analysts clearly believe Okta is more favorable than Temenos Group.

Summary

Okta beats Temenos Group on 7 of the 13 factors compared between the two stocks.

About Temenos Group

Temenos Group is a Swiss financial technology company that develops software for banks and other financial institutions. Founded in Geneva in 1993, the company provides technology for core banking operations, including managing accounts, deposits, lending and customer transactions. Its offerings also cover digital banking, payments and wealth management, helping financial institutions deliver services through online and mobile channels and support activities such as investment and portfolio management.

About Okta

Okta, Inc. provides cloud-based identity and access management services. Its platform helps organizations manage how employees, customers, partners and other users sign in to applications and access digital resources. Okta’s products include single sign-on, multifactor authentication, identity governance and user lifecycle management. Through Auth0, which Okta acquired in 2021, the company also offers tools that developers can use to add identity and authentication features to customer-facing applications.