Financial Review: Clearwater Analytics (NYSE:CWAN) vs. NetObjects (OTCMKTS:NETO)

Clearwater Analytics (NYSE:CWAN) and NetObjects (OTCMKTS:NETO) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Clearwater Analytics and NetObjects”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Analytics	$368.17 million	21.61	-$21.63 million	$0.01	3,224.22
NetObjects	N/A	N/A	N/A	N/A	N/A

NetObjects has lower revenue, but higher earnings than Clearwater Analytics.

Analyst Ratings

This is a summary of current recommendations and price targets for Clearwater Analytics and NetObjects, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Analytics	1	3	5	0	2.44
NetObjects	0	0	0	0	0.00

Clearwater Analytics presently has a consensus target price of $31.11, suggesting a potential downside of 3.41%. Given NetObjects’ higher probable upside, analysts clearly believe NetObjects is more favorable than Clearwater Analytics.

Risk and Volatility

Clearwater Analytics has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, NetObjects has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Clearwater Analytics and NetObjects’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearwater Analytics	0.21%	5.68%	4.17%
NetObjects	N/A	N/A	N/A

Insider and Institutional Ownership

50.1% of Clearwater Analytics shares are owned by institutional investors. 4.6% of Clearwater Analytics shares are owned by insiders. Comparatively, 13.6% of NetObjects shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Clearwater Analytics beats NetObjects on 7 of the 10 factors compared between the two stocks.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.

About NetObjects

NetObjects Inc. provides web design software and templates. The company offers NetObjects Fusion, a web design software that enables to build, manage, and promote websites; and NetObjects Fusion Essentials, a free drag-and-drop website builder. It also provides NetObjects Mosaic, an online application for mobile website designing; and publishes website for photographers. The company was founded in 1996 and is based in Doylestown, Pennsylvania.