Critical Review: WaveDancer (NASDAQ:WAVD) and Tenable (NASDAQ:TENB)

WaveDancer (NASDAQ:WAVD) and Tenable (NASDAQ:TENB) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Analyst Ratings

This is a summary of current ratings for WaveDancer and Tenable, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WaveDancer	0	0	0	0	N/A
Tenable	0	4	11	1	2.81

Tenable has a consensus price target of $52.67, indicating a potential upside of 29.02%. Given Tenable’s higher probable upside, analysts plainly believe Tenable is more favorable than WaveDancer.

Profitability

This table compares WaveDancer and Tenable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WaveDancer	-17.55%	-57.30%	-27.44%
Tenable	-7.77%	-7.63%	-1.72%

Institutional and Insider Ownership

5.0% of WaveDancer shares are owned by institutional investors. Comparatively, 89.1% of Tenable shares are owned by institutional investors. 22.7% of WaveDancer shares are owned by company insiders. Comparatively, 4.3% of Tenable shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

WaveDancer has a beta of 3.15, suggesting that its stock price is 215% more volatile than the S&P 500. Comparatively, Tenable has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Earnings & Valuation

This table compares WaveDancer and Tenable”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WaveDancer	$7.74 million	0.82	-$2.03 million	N/A	N/A
Tenable	$798.71 million	6.09	-$78.28 million	($0.58)	-70.38

WaveDancer has higher earnings, but lower revenue than Tenable.

Summary

Tenable beats WaveDancer on 9 of the 12 factors compared between the two stocks.

About WaveDancer

WaveDancer, Inc. develops and maintains information technology systems in the United States. The company also modernizes client information systems; and offers other IT-related professional services to government and commercial organizations. In addition, it offers IT consulting, development, training, migration, and on-site project support; and software development, system modernizations, cloud services, and cybersecurity services. The company was formerly known as Information Analysis Incorporated and changed its name to WaveDancer, Inc. in December 2021. WaveDancer, Inc. was incorporated in 1979 and is headquartered in Fairfax, Virginia.

About Tenable

Tenable Holdings, Inc. provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Its platforms include Tenable Vulnerability Management, a cloud-delivered software as a service that provides organizations with a risk-based view of traditional and modern attack surfaces; Tenable Cloud Security, a cloud-native cloud security solutions for security teams to continuously assess the security posture; Tenable Identity Exposure, a solution to secure Active Directory environments; Tenable Web App Scanning, which provides scanning for modern web applications; Tenable Lumin Exposure View, a measurement tool; Tenable Attack Surface Management, an external attack surface management solution; Tenable Security Center, an on-premises solution that provides a risk-based view of an organization’s IT, security and compliance posture; and Tenable OT Security, an operational technology security solution which provides threat detection, asset tracking, vulnerability management, and configuration control capabilities. The company also offers Nessus, a vulnerability assessment solution for cybersecurity industry and enterprise platform; and Nessus Expert, that enables users to programmatically detect cloud infrastructure misconfigurations and vulnerabilities in the design and build phase. Tenable Holdings, Inc. was founded in 2002 and is headquartered in Columbia, Maryland.