Tyler Technologies (NYSE:TYL) and Braze (NASDAQ:BRZE) Financial Survey

Braze (NASDAQ:BRZE – Get Rating) and Tyler Technologies (NYSE:TYL – Get Rating) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Braze and Tyler Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braze	0	2	14	0	2.88
Tyler Technologies	0	3	8	0	2.73

Braze currently has a consensus price target of $41.25, suggesting a potential upside of 32.04%. Tyler Technologies has a consensus price target of $433.62, suggesting a potential upside of 32.76%. Given Tyler Technologies’ higher possible upside, analysts clearly believe Tyler Technologies is more favorable than Braze.

Valuation and Earnings

This table compares Braze and Tyler Technologies’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braze	$238.04 million	12.56	-$76.72 million	($1.67)	-18.71
Tyler Technologies	$1.85 billion	7.38	$164.24 million	$3.87	84.40

Tyler Technologies has higher revenue and earnings than Braze. Braze is trading at a lower price-to-earnings ratio than Tyler Technologies, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

44.1% of Braze shares are owned by institutional investors. Comparatively, 89.5% of Tyler Technologies shares are owned by institutional investors. 32.1% of Braze shares are owned by company insiders. Comparatively, 2.0% of Tyler Technologies 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.

Volatility and Risk

Braze has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Braze and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braze	-45.37%	-29.94%	-20.80%
Tyler Technologies	8.88%	9.61%	5.10%

Summary

Tyler Technologies beats Braze on 10 of the 14 factors compared between the two stocks.

About Braze

(Get Rating)

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. It offers data ingestion products, such as Braze software development kits that automatically manage data ingestion and the delivery of mobile and web notifications, in-application/in-browser interstitial messages, and content cards, as well as can be integrated into a range of digital interfaces and application development frameworks; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; and partner cohort syncing, which allow brands to sync user cohorts from partners. The company also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators, and helps to understand the factors that determine which consumers belong to a particular segment; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, it provides personalization and action products; and orchestration products, which include Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences, which include onboarding flows, nurture campaigns, win-back strategies, and others; campaigns, which allow customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; frequency capping and rate limiting; intelligent selection; and reporting and analytics. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.

About Tyler Technologies

(Get Rating)

Tyler Technologies, Inc. engages in the provision of integrated technology and management solutions and services for the public sector with a focus on local governments. It operates through the following segments: Enterprise Software and Appraisal and Tax. The Enterprise Software segment provides municipal and county governments and schools with software systems to meet their information technology and automation needs for mission-critical back-office functions such as financial management, courts and justice processes. The Appraisal and Tax segment provides systems and software that automate the appraisal and assessment of real and personal property, as well as property appraisal outsourcing services for local governments and taxing authorities. The company was founded in 1966 and is headquartered in Plano, TX.