Smartsheet (NYSE:SMAR) versus Porch Group (NASDAQ:PRCH) Financial Comparison

Porch Group (NASDAQ:PRCH) and Smartsheet (NYSE:SMAR) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Porch Group and Smartsheet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Porch Group	-23.68%	N/A	-11.26%
Smartsheet	-8.35%	-12.06%	-5.62%

Valuation & Earnings

This table compares Porch Group and Smartsheet’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Porch Group	$430.30 million	0.43	-$133.93 million	($1.14)	-1.65
Smartsheet	$958.34 million	6.64	-$104.63 million	($0.62)	-74.16

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

Institutional and Insider Ownership

48.5% of Porch Group shares are owned by institutional investors. Comparatively, 90.0% of Smartsheet shares are owned by institutional investors. 23.5% of Porch Group shares are owned by insiders. Comparatively, 4.5% of Smartsheet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Porch Group and Smartsheet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Porch Group	0	1	2	0	2.67
Smartsheet	1	3	13	0	2.71

Porch Group currently has a consensus price target of $4.92, indicating a potential upside of 161.52%. Smartsheet has a consensus price target of $52.00, indicating a potential upside of 13.09%. Given Porch Group’s higher possible upside, equities analysts plainly believe Porch Group is more favorable than Smartsheet.

Volatility & Risk

Porch Group has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, Smartsheet has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Summary

Smartsheet beats Porch Group on 9 of the 14 factors compared between the two stocks.

About Porch Group

Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.

About Smartsheet

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.