Financial Analysis: Yext (NYSE:YEXT) vs. E2open Parent (NYSE:ETWO)

Yext (NYSE:YEXT) and E2open Parent (NYSE:ETWO) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Profitability

This table compares Yext and E2open Parent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	-1.51%	-4.17%	-1.28%
E2open Parent	-125.24%	3.36%	1.84%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Yext and E2open Parent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	0	3	2	0	2.40
E2open Parent	0	4	0	0	2.00

Yext presently has a consensus price target of $8.50, suggesting a potential upside of 65.05%. E2open Parent has a consensus price target of $4.20, suggesting a potential downside of 1.87%. Given Yext’s stronger consensus rating and higher probable upside, research analysts plainly believe Yext is more favorable than E2open Parent.

Valuation & Earnings

This table compares Yext and E2open Parent’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$400.86 million	1.62	-$2.63 million	($0.05)	-103.00
E2open Parent	$625.60 million	2.31	-$1.07 billion	($2.59)	-1.64

Yext has higher earnings, but lower revenue than E2open Parent. Yext is trading at a lower price-to-earnings ratio than E2open Parent, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Yext has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, E2open Parent has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

71.0% of Yext shares are owned by institutional investors. 8.4% of Yext shares are owned by insiders. Comparatively, 4.7% of E2open Parent shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Yext beats E2open Parent on 9 of the 14 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company's platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About E2open Parent

E2open Parent Holdings, Inc. provides cloud-based and end-to-end supply chain management and orchestration SaaS platform in the Americas, Europe, and the Asia Pacific. Its SaaS platform includes various key strategic and operational areas, including omni-channel, demand sensing, supply planning, global trade management, transportation and logistics and manufacturing and supply management. The company's software combines networks, data, and applications to provide a deeply embedded and mission-critical platform that allows its clients to optimize their channel and supply chains. It serves consumer goods, food and beverage, manufacturing, retail, industrial and automotive, aerospace and defense, technology and transportation, and other industries. The company was incorporated in 2020 and is headquartered in Austin, Texas.