Temenos Group (OTCMKTS:TMSNY – Get Free Report) and Kingsoft Cloud (NASDAQ:KC – Get Free Report) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Insider & Institutional Ownership
13.4% of Kingsoft Cloud shares are held by institutional investors. 14.2% of Kingsoft Cloud shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Temenos Group has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Kingsoft Cloud has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Temenos Group | 0 | 2 | 0 | 2 | 3.00 |
| Kingsoft Cloud | 1 | 1 | 4 | 0 | 2.50 |
Kingsoft Cloud has a consensus target price of $18.53, suggesting a potential upside of 20.90%. Given Kingsoft Cloud’s higher probable upside, analysts plainly believe Kingsoft Cloud is more favorable than Temenos Group.
Earnings and Valuation
This table compares Temenos Group and Kingsoft Cloud”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Temenos Group | $1.09 billion | 6.01 | $280.61 million | $0.62 | 146.94 |
| Kingsoft Cloud | $1.37 billion | 3.39 | -$133.88 million | ($0.49) | -31.29 |
Temenos Group has higher earnings, but lower revenue than Kingsoft Cloud. Kingsoft Cloud is trading at a lower price-to-earnings ratio than Temenos Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Temenos Group and Kingsoft Cloud’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Temenos Group | 25.72% | 52.71% | 12.19% |
| Kingsoft Cloud | -9.74% | -13.06% | -3.89% |
Summary
Temenos Group beats Kingsoft Cloud on 9 of the 15 factors compared between the two stocks.
About Temenos Group
Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.
About Kingsoft Cloud
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.
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