Contrasting CLPS Incorporation (NASDAQ:CLPS) and Confluent (NASDAQ:CFLT)

Confluent (NASDAQ:CFLT) and CLPS Incorporation (NASDAQ:CLPS) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Earnings and Valuation

This table compares Confluent and CLPS Incorporation’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Confluent	$776.95 million	11.07	-$442.75 million	($1.25)	-21.66
CLPS Incorporation	$150.36 million	0.16	$190,000.00	N/A	N/A

CLPS Incorporation has lower revenue, but higher earnings than Confluent.

Profitability

This table compares Confluent and CLPS Incorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Confluent	-46.73%	-40.55%	-13.56%
CLPS Incorporation	N/A	N/A	N/A

Insider and Institutional Ownership

78.1% of Confluent shares are owned by institutional investors. Comparatively, 0.2% of CLPS Incorporation shares are owned by institutional investors. 13.8% of Confluent shares are owned by insiders. Comparatively, 58.7% of CLPS Incorporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Confluent has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, CLPS Incorporation has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Confluent and CLPS Incorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Confluent	1	6	21	0	2.71
CLPS Incorporation	0	0	0	0	N/A

Confluent currently has a consensus target price of $32.93, suggesting a potential upside of 21.63%. Given Confluent’s higher probable upside, analysts plainly believe Confluent is more favorable than CLPS Incorporation.

Summary

CLPS Incorporation beats Confluent on 6 of the 11 factors compared between the two stocks.

About Confluent

Confluent, Inc. operates a data streaming platform in the United States and internationally. The company provides platforms that allow customers to connect their applications, systems, and data layers, such as Confluent Cloud, a managed cloud-native software-as-a-service; and Confluent Platform, an enterprise-grade self-managed software. It offers connectors for existing applications, and IT and cloud infrastructure; Apache Flink services that allows teams to create reusable data streams that can be delivered real-time; ksqlDB, a data-in-motion database that allows users to build data-in-motion applications using a few SQL statements; stream governance, a managed data governance suite that is designed for the intricacies of streaming data, which allows teams to accelerate data streaming initiatives without bypassing controls for risk management and regulatory compliance; and stream designer which builds streaming data pipelines visually. In addition, the company offers professional services comprising packaged and residency offerings; education offerings consisting of instructor-led and self-paced training and certification guidance, technical resources, and access to hands-on training and certification exams; and certification programs. It serves banking and financial services industries, as well as retail and e-commerce, manufacturing, automotive, communication service providers, gaming, public sector, insurance, and technology industries. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.