Head-To-Head Analysis: Asana (NYSE:ASAN) & KWESST Micro Systems (NASDAQ:KWE)

KWESST Micro Systems (NASDAQ:KWE) and Asana (NYSE:ASAN) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Institutional and Insider Ownership

21.4% of KWESST Micro Systems shares are owned by institutional investors. Comparatively, 26.2% of Asana shares are owned by institutional investors. 63.3% of Asana shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

KWESST Micro Systems has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Asana has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Valuation & Earnings

This table compares KWESST Micro Systems and Asana’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KWESST Micro Systems	$970,000.00	4.33	-$6.90 million	($1.04)	-0.67
Asana	$652.50 million	4.74	-$257.03 million	($1.17)	-11.75

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

Profitability

This table compares KWESST Micro Systems and Asana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KWESST Micro Systems	-1,045.44%	-289.30%	-117.92%
Asana	-39.39%	-75.22%	-26.20%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for KWESST Micro Systems and Asana, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KWESST Micro Systems	0	0	1	0	3.00
Asana	4	4	3	0	1.91

Asana has a consensus price target of $20.67, suggesting a potential upside of 51.74%. Given Asana’s higher probable upside, analysts plainly believe Asana is more favorable than KWESST Micro Systems.

Summary

Asana beats KWESST Micro Systems on 9 of the 14 factors compared between the two stocks.

About KWESST Micro Systems

KWESST Micro Systems Inc. engages in the development and commercialization of tactical systems and ammunitions for military, public safety agencies, and personal defense markets. It provides non-lethal products, including PARA OPS devices and ARWEN products. The company was incorporated in 2017 and is headquartered in Ottawa, Canada.

About Asana

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. Its platform helps organizations to orchestrate work from daily tasks to cross-functional strategic initiatives; manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones; and communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights. The company serves customers in various industries, such as technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.