Yext (NYSE:YEXT) and Riskified (NYSE:RSKD) Critical Analysis

Yext (NYSE:YEXT) and Riskified (NYSE:RSKD) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

71.0% of Yext shares are owned by institutional investors. Comparatively, 59.0% of Riskified shares are owned by institutional investors. 7.8% of Yext shares are owned by insiders. Comparatively, 17.4% of Riskified shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Yext and Riskified”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$443.02 million	1.45	$37.87 million	$0.17	38.29
Riskified	$368.15 million	2.62	-$27.57 million	($0.11)	-59.18

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

Risk & Volatility

Yext has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Riskified has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Profitability

This table compares Yext and Riskified’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	5.90%	43.23%	7.50%
Riskified	-4.23%	-3.93%	-2.79%

Analyst Ratings

This is a summary of current ratings and price targets for Yext and Riskified, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	1	5	0	0	1.83
Riskified	2	3	2	0	2.00

Yext currently has a consensus target price of $6.33, suggesting a potential downside of 2.71%. Riskified has a consensus target price of $6.50, suggesting a potential downside of 0.15%. Given Riskified’s stronger consensus rating and higher probable upside, analysts clearly believe Riskified is more favorable than Yext.

Summary

Yext beats Riskified on 8 of the 14 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.