Critical Survey: CI&T (NYSE:CINT) vs. HashiCorp (NASDAQ:HCP)

CI&T (NYSE:CINT) and HashiCorp (NASDAQ:HCP) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Insider and Institutional Ownership

92.4% of CI&T shares are owned by institutional investors. Comparatively, 86.3% of HashiCorp shares are owned by institutional investors. 22.5% of HashiCorp shares are owned by 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.

Risk and Volatility

CI&T has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, HashiCorp has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for CI&T and HashiCorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CI&T	0	4	4	1	2.67
HashiCorp	0	11	2	0	2.15

CI&T currently has a consensus price target of $8.37, indicating a potential upside of 18.42%. HashiCorp has a consensus price target of $32.27, indicating a potential downside of 7.77%. Given CI&T’s stronger consensus rating and higher possible upside, research analysts clearly believe CI&T is more favorable than HashiCorp.

Profitability

This table compares CI&T and HashiCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CI&T	4.39%	9.55%	4.94%
HashiCorp	-18.66%	-7.91%	-5.79%

Valuation & Earnings

This table compares CI&T and HashiCorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CI&T	$2.23 billion	0.43	$26.55 million	$0.13	54.35
HashiCorp	$654.89 million	10.92	-$190.67 million	($0.61)	-57.36

CI&T has higher revenue and earnings than HashiCorp. HashiCorp is trading at a lower price-to-earnings ratio than CI&T, indicating that it is currently the more affordable of the two stocks.

Summary

CI&T beats HashiCorp on 13 of the 15 factors compared between the two stocks.

About CI&T

CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.

About HashiCorp

HashiCorp, Inc. engages in the provision of multi-cloud infrastructure automation solutions worldwide. The company offers infrastructure provisioning products, including Terraform, that enables IT operations teams to apply an Infrastructure-as-Code approach, where processes and configuration required to support applications are codified and automated instead of being manual and ticket-based; Packer, that provides a consistent way to define the process of transforming the raw source inputs into a production worthy artifact, across any environment or packaging format; and Vagrant, that allows teams to define how development environments are set up. It also provides security products, such as Vault, a secrets management and data protection product, which enables security teams to apply policies based on application and user identity to govern access to credentials and secure sensitive data; and Boundary, that applies an identity-based approach to privileged access management and unifies the controls to a single system. In addition, the company offers Consul, an application-centric networking automation product that enables practitioners to manage application traffic, security teams to secure and restrict access between applications, and operations teams to automate the underlying network infrastructure; Nomad, a scheduler and workload orchestrator, which provides practitioners with a self-service interface to manage the application lifecycle; and Waypoint, an application delivery product that provides a developer-focused workflow for the build, deploy, and release process. Further, it provides HashiCorp Cloud Platform, a fully-managed cloud platform for multiple products to accelerate enterprise cloud migration by addressing resource and skills gaps, improving operational efficiency, and speeding up deployment time for customers. The company was incorporated in 2012 and is headquartered in San Francisco, California.