Procore Technologies (NYSE:PCOR) & Vertex (NASDAQ:VERX) Critical Contrast

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

Profitability

This table compares Procore Technologies and Vertex’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%
Vertex	0.45%	29.00%	5.96%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Procore Technologies and Vertex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procore Technologies	1	1	16	3	3.00
Vertex	1	7	7	0	2.40

Procore Technologies currently has a consensus target price of $70.12, indicating a potential upside of 36.60%. Vertex has a consensus target price of $17.43, indicating a potential upside of 45.72%. Given Vertex’s higher probable upside, analysts clearly believe Vertex is more favorable than Procore Technologies.

Earnings & Valuation

This table compares Procore Technologies and Vertex”s 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	5.90	-$100.78 million	($0.26)	-197.42
Vertex	$748.44 million	2.59	$7.21 million	$0.02	598.00

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

Risk and Volatility

Procore Technologies has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Vertex has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Institutional & Insider Ownership

81.1% of Procore Technologies shares are owned by institutional investors. Comparatively, 70.3% of Vertex shares are owned by institutional investors. 16.8% of Procore Technologies shares are owned by company insiders. Comparatively, 42.3% of Vertex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Vertex beats Procore Technologies on 9 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 Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.