Contrasting Yext (NYSE:YEXT) & Riskified (NYSE:RSKD)

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

Volatility and Risk

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Riskified and Yext, as provided by MarketBeat.com.

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

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

Earnings & Valuation

This table compares Riskified and Yext”s top-line revenue, earnings per share (EPS) and valuation.

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

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.

Insider & Institutional Ownership

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

Profitability

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

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

Summary

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

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.

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.