WalkMe (NASDAQ:WKME) and Confluent (NASDAQ:CFLT) Critical Analysis

WalkMe (NASDAQ:WKME) and Confluent (NASDAQ:CFLT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares WalkMe and Confluent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WalkMe	-22.15%	-71.73%	-11.53%
Confluent	-56.99%	-44.16%	-14.52%

Insider & Institutional Ownership

70.9% of WalkMe shares are owned by institutional investors. Comparatively, 78.1% of Confluent shares are owned by institutional investors. 13.8% of Confluent 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.

Volatility & Risk

WalkMe has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500. Comparatively, Confluent has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for WalkMe and Confluent, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WalkMe	1	3	3	0	2.29
Confluent	1	6	19	0	2.69

WalkMe presently has a consensus target price of $13.07, indicating a potential upside of 61.38%. Confluent has a consensus target price of $32.77, indicating a potential upside of 4.43%. Given WalkMe’s higher probable upside, analysts clearly believe WalkMe is more favorable than Confluent.

Valuation & Earnings

This table compares WalkMe and Confluent’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WalkMe	$266.95 million	2.63	-$59.14 million	($0.67)	-12.09
Confluent	$776.95 million	12.63	-$442.75 million	($1.47)	-21.35

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

Summary

Confluent beats WalkMe on 8 of the 14 factors compared between the two stocks.

About WalkMe

WalkMe Ltd. provides cloud-based digital adaption platform and associated professional services in the United States and internationally. The company's AI-driven digital adoption platform helps companies to effectively navigate change brought by technology, which stack, identifies, and delivers the personalized guidance and automation. In addition, the company WalkMe's platform is delivered via web, desktop or mobile and pre-packaged to support the key workflows. The company was formerly known as Make Tutorial Ltd. and changed its name to WalkMe Ltd. in March 2012. WalkMe Ltd. was incorporated in 2011 and is headquartered in Tel Aviv, Israel.

About Confluent

Confluent, Inc. operates a data streaming platform in the United States and internationally. The company provides platforms that allow customers to connect their applications, systems, and data layers, such as Confluent Cloud, a managed cloud-native software-as-a-service; and Confluent Platform, an enterprise-grade self-managed software. It offers connectors for existing applications, and IT and cloud infrastructure; Apache Flink services that allows teams to create reusable data streams that can be delivered real-time; ksqlDB, a data-in-motion database that allows users to build data-in-motion applications using a few SQL statements; stream governance, a managed data governance suite that is designed for the intricacies of streaming data, which allows teams to accelerate data streaming initiatives without bypassing controls for risk management and regulatory compliance; and stream designer which builds streaming data pipelines visually. In addition, the company offers professional services comprising packaged and residency offerings; education offerings consisting of instructor-led and self-paced training and certification guidance, technical resources, and access to hands-on training and certification exams; and certification programs. It serves banking and financial services industries, as well as retail and e-commerce, manufacturing, automotive, communication service providers, gaming, public sector, insurance, and technology industries. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.