Analyzing Clearwater Analytics (NYSE:CWAN) and NetObjects (OTCMKTS:NETO)

Clearwater Analytics (NYSE:CWAN) and NetObjects (OTCMKTS:NETO) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

Clearwater Analytics has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, NetObjects has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Clearwater Analytics and NetObjects, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Analytics	1	3	5	0	2.44
NetObjects	0	0	0	0	0.00

Clearwater Analytics currently has a consensus target price of $31.11, suggesting a potential downside of 2.50%. Given NetObjects’ higher probable upside, analysts clearly believe NetObjects is more favorable than Clearwater Analytics.

Insider and Institutional Ownership

50.1% of Clearwater Analytics shares are held by institutional investors. 3.3% of Clearwater Analytics shares are held by company insiders. Comparatively, 13.6% of NetObjects shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Clearwater Analytics and NetObjects’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearwater Analytics	0.21%	5.68%	4.17%
NetObjects	N/A	N/A	N/A

Earnings & Valuation

This table compares Clearwater Analytics and NetObjects”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Analytics	$368.17 million	21.41	-$21.63 million	$0.01	3,194.19
NetObjects	N/A	N/A	N/A	N/A	N/A

NetObjects has lower revenue, but higher earnings than Clearwater Analytics.

Summary

Clearwater Analytics beats NetObjects on 7 of the 10 factors compared between the two stocks.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.

About NetObjects

NetObjects Inc. provides web design software and templates. The company offers NetObjects Fusion, a web design software that enables to build, manage, and promote websites; and NetObjects Fusion Essentials, a free drag-and-drop website builder. It also provides NetObjects Mosaic, an online application for mobile website designing; and publishes website for photographers. The company was founded in 1996 and is based in Doylestown, Pennsylvania.