VTEX (NYSE:VTEX) versus HubSpot (NYSE:HUBS) Head to Head Contrast

HubSpot (NYSE:HUBS) and VTEX (NYSE:VTEX) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Profitability

This table compares HubSpot and VTEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HubSpot	-0.56%	-1.16%	-0.54%
VTEX	3.97%	3.60%	2.53%

Insider & Institutional Ownership

90.4% of HubSpot shares are owned by institutional investors. Comparatively, 63.7% of VTEX shares are owned by institutional investors. 4.5% of HubSpot shares are owned by company insiders. Comparatively, 40.9% of VTEX shares are owned by company 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.

Earnings and Valuation

This table compares HubSpot and VTEX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HubSpot	$2.17 billion	17.39	-$176.29 million	($0.27)	-2,708.14
VTEX	$225.91 million	5.17	-$13.69 million	$0.06	105.75

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

Risk and Volatility

HubSpot has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, VTEX has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for HubSpot and VTEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HubSpot	0	6	18	0	2.75
VTEX	0	1	3	0	2.75

HubSpot presently has a consensus price target of $721.26, indicating a potential downside of 1.36%. VTEX has a consensus price target of $9.18, indicating a potential upside of 44.60%. Given VTEX’s higher probable upside, analysts clearly believe VTEX is more favorable than HubSpot.

Summary

VTEX beats HubSpot on 8 of the 13 factors compared between the two stocks.

About HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.

About VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.