Datasea (NASDAQ:DTSS) & Stem (NYSE:STEM) Head-To-Head Analysis

Stem (NYSE:STEM) and Datasea (NASDAQ:DTSS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Stem and Datasea”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stem	$164.95 million	0.94	-$854.01 million	($13.63)	-1.36
Datasea	$71.62 million	0.21	-$5.09 million	($0.89)	-2.02

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

Institutional & Insider Ownership

61.6% of Stem shares are held by institutional investors. Comparatively, 82.1% of Datasea shares are held by institutional investors. 5.1% of Stem shares are held by company insiders. Comparatively, 50.7% of Datasea shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Stem and Datasea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stem	62.20%	N/A	-21.71%
Datasea	-7.10%	-155.68%	-76.04%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Stem and Datasea, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stem	1	7	0	0	1.88
Datasea	1	0	0	0	1.00

Stem presently has a consensus target price of $14.57, indicating a potential downside of 21.17%. Given Stem’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Stem is more favorable than Datasea.

Volatility & Risk

Stem has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Summary

Stem beats Datasea on 9 of the 13 factors compared between the two stocks.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.