Financial Analysis: Tuya (NYSE:TUYA) versus Dassault Systèmes (OTCMKTS:DASTY)

Tuya (NYSE:TUYA) and Dassault Systèmes (OTCMKTS:DASTY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Valuation and Earnings

This table compares Tuya and Dassault Systèmes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$229.99 million	3.83	-$60.31 million	($0.03)	-58.17
Dassault Systèmes	$6.44 billion	6.96	$1.14 billion	$0.93	36.03

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

Profitability

This table compares Tuya and Dassault Systèmes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tuya	-6.20%	-0.65%	-0.59%
Dassault Systèmes	18.31%	18.15%	9.85%

Risk and Volatility

Tuya has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Dassault Systèmes has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Tuya and Dassault Systèmes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	0	2	0	3.00
Dassault Systèmes	0	0	0	0	0.00

Tuya presently has a consensus price target of $2.70, indicating a potential upside of 54.73%. Given Tuya’s stronger consensus rating and higher possible upside, analysts clearly believe Tuya is more favorable than Dassault Systèmes.

Institutional and Insider Ownership

11.5% of Tuya shares are held by institutional investors. Comparatively, 0.0% of Dassault Systèmes shares are held by institutional investors. 2.1% of Tuya shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Dassault Systèmes beats Tuya on 9 of the 14 factors compared between the two stocks.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.

About Dassault Systèmes

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.