AvidXchange (NASDAQ:AVDX – Get Free Report) and Kingsoft Cloud (NASDAQ:KC – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Volatility & Risk
AvidXchange has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Kingsoft Cloud has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for AvidXchange and Kingsoft Cloud, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AvidXchange | 1 | 5 | 6 | 0 | 2.42 |
| Kingsoft Cloud | 0 | 1 | 4 | 0 | 2.80 |
Insider & Institutional Ownership
80.6% of AvidXchange shares are owned by institutional investors. Comparatively, 13.4% of Kingsoft Cloud shares are owned by institutional investors. 10.3% of AvidXchange shares are owned by company insiders. Comparatively, 14.2% of Kingsoft Cloud shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares AvidXchange and Kingsoft Cloud’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AvidXchange | $413.47 million | 3.92 | -$47.33 million | ($0.15) | -52.27 |
| Kingsoft Cloud | $6.96 billion | 0.09 | -$306.53 million | ($1.13) | -2.12 |
AvidXchange has higher earnings, but lower revenue than Kingsoft Cloud. AvidXchange is trading at a lower price-to-earnings ratio than Kingsoft Cloud, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares AvidXchange and Kingsoft Cloud’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AvidXchange | -3.18% | -0.23% | -0.07% |
| Kingsoft Cloud | -27.62% | -25.61% | -12.55% |
Summary
AvidXchange beats Kingsoft Cloud on 8 of the 14 factors compared between the two stocks.
About AvidXchange
AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.
About Kingsoft Cloud
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.
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