Analyzing MultiSensor AI (NASDAQ:MSAI) & Upland Software (NASDAQ:UPLD)

MultiSensor AI (NASDAQ:MSAI) and Upland Software (NASDAQ:UPLD) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Insider & Institutional Ownership

82.3% of MultiSensor AI shares are held by institutional investors. Comparatively, 77.8% of Upland Software shares are held by institutional investors. 50.8% of MultiSensor AI shares are held by company insiders. Comparatively, 14.8% of Upland Software shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MultiSensor AI and Upland Software, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MultiSensor AI	1	1	0	1	2.33
Upland Software	1	0	3	0	2.50

MultiSensor AI presently has a consensus price target of $120.00, suggesting a potential upside of 1,954.79%. Upland Software has a consensus price target of $3.67, suggesting a potential upside of 394.29%. Given MultiSensor AI’s higher probable upside, analysts plainly believe MultiSensor AI is more favorable than Upland Software.

Valuation and Earnings

This table compares MultiSensor AI and Upland Software”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MultiSensor AI	$5.55 million	2.13	-$11.71 million	($8.43)	-0.69
Upland Software	$216.88 million	0.10	-$38.90 million	($0.70)	-1.06

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

Risk & Volatility

MultiSensor AI has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500. Comparatively, Upland Software has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares MultiSensor AI and Upland Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MultiSensor AI	-162.60%	-48.87%	-41.13%
Upland Software	-7.08%	-51.46%	5.88%

Summary

MultiSensor AI beats Upland Software on 8 of the 15 factors compared between the two stocks.

About MultiSensor AI

MultiSensor AI Holdings, Inc. manufactures and distributes multi-sensor systems for thermographic and other use in various industrial applications in the United States and internationally. The company offers sensor devices ranging from small to large handheld designs with built-in displays and controls, fixed-mounted pan-tilt-zoom single- and multi-sensor camera standalone systems, and mobile multi-sensor payload and gimbal systems for unmanned aerial vehicles and unmanned ground vehicles. It also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers operating in the distribution and logistics, manufacturing, utility, and oil and gas sectors. The company was founded in 1995 and is headquartered in Beaumont, Texas.

About Upland Software

Upland Software, Inc., together with its subsidiaries, provides cloud-based software applications under the Upland brand name in the United States, the United Kingdom, Canada, and internationally. It offers software applications that enable organizations to plan, manage and execute projects, and work in the areas of marketing, sales, contact center, knowledge management, project management, information technology, business operations, human resources, and legal. The company also provides professional services, such as implementation, data extraction, integration and configuration, and training services, as well as customer support services. It serves corporations, government agencies, and small and medium-sized businesses in the financial, consulting, technology, manufacturing, media, telecommunication, insurance, non-profit healthcare, life sciences, retail, and hospitality sectors. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was incorporated in 2010 and is headquartered in Austin, Texas.