Datasea (NASDAQ:DTSS) & Procore Technologies (NYSE:PCOR) Critical Analysis

Procore Technologies (NYSE:PCOR) and Datasea (NASDAQ:DTSS) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Procore Technologies	-2.73%	0.71%	0.41%
Datasea	-4.80%	-88.98%	-37.33%

Analyst Ratings

This is a summary of current ratings and price targets for Procore Technologies and Datasea, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procore Technologies	1	2	16	1	2.85
Datasea	1	0	0	0	1.00

Procore Technologies presently has a consensus price target of $70.44, indicating a potential upside of 16.29%. Given Procore Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Procore Technologies is more favorable than Datasea.

Risk & Volatility

Procore Technologies has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Datasea has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Insider and Institutional Ownership

81.1% of Procore Technologies shares are held by institutional investors. Comparatively, 82.1% of Datasea shares are held by institutional investors. 16.8% of Procore Technologies shares are held by company insiders. Comparatively, 50.6% of Datasea shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procore Technologies	$1.32 billion	6.96	-$100.78 million	($0.26)	-232.96
Datasea	$71.62 million	0.10	-$5.09 million	($0.32)	-2.09

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

Summary

Procore Technologies beats Datasea on 10 of the 15 factors compared between the two stocks.

About Procore Technologies

Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Workforce Management, that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time; and Construction Intelligence, that allows customers to capture, manage, and learn from data for project and portfolio reporting, analytics, and artificial intelligence-guided workflows, as well as to monitor projects and drive informed decision-making for business needs. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, 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.