Head-To-Head Review: Consensus Cloud Solutions (NASDAQ:CCSI) & Snowflake (NYSE:SNOW)

Consensus Cloud Solutions (NASDAQ:CCSI) and Snowflake (NYSE:SNOW) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Consensus Cloud Solutions and Snowflake’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consensus Cloud Solutions	25.52%	-83.93%	15.35%
Snowflake	-33.02%	-24.23%	-13.30%

Earnings & Valuation

This table compares Consensus Cloud Solutions and Snowflake”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consensus Cloud Solutions	$349.37 million	1.29	$77.29 million	$4.32	5.32
Snowflake	$3.84 billion	18.13	-$836.10 million	($4.21)	-49.52

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

Risk and Volatility

Consensus Cloud Solutions has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Snowflake has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Consensus Cloud Solutions and Snowflake, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consensus Cloud Solutions	2	0	3	0	2.20
Snowflake	2	6	32	2	2.81

Consensus Cloud Solutions presently has a consensus target price of $27.40, indicating a potential upside of 19.18%. Snowflake has a consensus target price of $222.81, indicating a potential upside of 6.87%. Given Consensus Cloud Solutions’ higher possible upside, analysts plainly believe Consensus Cloud Solutions is more favorable than Snowflake.

Insider & Institutional Ownership

93.9% of Consensus Cloud Solutions shares are owned by institutional investors. Comparatively, 65.1% of Snowflake shares are owned by institutional investors. 2.5% of Consensus Cloud Solutions shares are owned by company insiders. Comparatively, 6.8% of Snowflake shares are owned by company 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.

Summary

Consensus Cloud Solutions beats Snowflake on 8 of the 15 factors compared between the two stocks.

About Consensus Cloud Solutions

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. The company offers eFax Corporate, a digital cloud-fax technology; Unite, a single platform that allows the user to choose between various protocols to send and receive healthcare information and can integrate into an existing electronic health record system or stand-alone if no EHR is present. It also offers jsign, an electronic and digital signature solution; Conductor, an interface engine and interoperability platform that provides integration technology; Clarity that transforms unstructured documents into structured actionable data; and eFax, an online faxing solution, as well as other products under the MyFax, MetroFax, Sfax, and SRfax brands. In addition, the company provides ECFax, an Corporate eFax. It serves healthcare, government, financial services, law, and education sectors. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.

About Snowflake

Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.