N-able (NYSE:NABL) & BILL (NYSE:BILL) Critical Analysis

N-able (NYSE:NABL) and BILL (NYSE:BILL) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Volatility and Risk

N-able has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, BILL has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares N-able and BILL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
N-able	-0.88%	3.55%	2.04%
BILL	-0.68%	3.74%	1.39%

Institutional and Insider Ownership

96.3% of N-able shares are owned by institutional investors. Comparatively, 98.0% of BILL shares are owned by institutional investors. 2.0% of N-able shares are owned by company insiders. Comparatively, 13.2% of BILL shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares N-able and BILL”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
N-able	$511.43 million	1.71	-$18.82 million	($0.02)	-231.75
BILL	$1.65 billion	2.31	-$11.24 million	($0.13)	-344.86

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for N-able and BILL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
N-able	2	4	2	0	2.00
BILL	1	7	11	1	2.60

N-able presently has a consensus price target of $5.08, suggesting a potential upside of 9.60%. BILL has a consensus price target of $58.67, suggesting a potential upside of 30.86%. Given BILL’s stronger consensus rating and higher probable upside, analysts plainly believe BILL is more favorable than N-able.

Summary

BILL beats N-able on 12 of the 15 factors compared between the two stocks.

About N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.

About BILL

BILL Holdings, Inc. provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. In addition, the company's artificial intelligence enabled software provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.