nCino (NASDAQ:NCNO) vs. Lightspeed Commerce (NYSE:LSPD) Financial Comparison

nCino (NASDAQ:NCNO) and Lightspeed Commerce (NYSE:LSPD) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for nCino and Lightspeed Commerce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nCino	0	3	9	0	2.75
Lightspeed Commerce	0	9	6	1	2.50

nCino presently has a consensus target price of $38.82, suggesting a potential downside of 6.28%. Lightspeed Commerce has a consensus target price of $19.88, suggesting a potential upside of 12.03%. Given Lightspeed Commerce’s higher possible upside, analysts clearly believe Lightspeed Commerce is more favorable than nCino.

Risk and Volatility

nCino has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Lightspeed Commerce has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500.

Institutional and Insider Ownership

94.8% of nCino shares are owned by institutional investors. Comparatively, 68.7% of Lightspeed Commerce shares are owned by institutional investors. 28.4% of nCino shares are owned 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 nCino and Lightspeed Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
nCino	-5.78%	1.06%	0.82%
Lightspeed Commerce	-13.56%	-0.10%	-0.10%

Valuation & Earnings

This table compares nCino and Lightspeed Commerce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nCino	$476.54 million	10.04	-$42.35 million	($0.27)	-153.40
Lightspeed Commerce	$1.01 billion	2.66	-$163.96 million	($0.89)	-19.93

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

Summary

nCino beats Lightspeed Commerce on 10 of the 15 factors compared between the two stocks.

About nCino

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.

About Lightspeed Commerce

Lightspeed Commerce Inc. engages in sale of cloud-based software subscriptions and payments solutions for small and midsize businesses, retailers, restaurants, and golf course operators in North America, Europe, the United Kingdom, Australia, New Zealand, and internationally. Its Software as a Service platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Retail, Lightspeed eCommerce, Lightspeed Restaurant, and Lightspeed B2B solutions. In addition, it sells hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montreal, Canada.