Head to Head Review: Informatica (NYSE:INFA) and KWESST Micro Systems (NASDAQ:KWE)

KWESST Micro Systems (NASDAQ:KWEGet Free Report) and Informatica (NYSE:INFAGet Free Report) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Institutional & Insider Ownership

21.4% of KWESST Micro Systems shares are held by institutional investors. Comparatively, 98.5% of Informatica shares are held by institutional investors. 53.9% of Informatica shares are held by company 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KWESST Micro Systems 0 0 1 0 3.00
Informatica 0 5 4 0 2.44

Informatica has a consensus price target of $34.78, suggesting a potential downside of 3.34%. Given Informatica’s higher probable upside, analysts plainly believe Informatica is more favorable than KWESST Micro Systems.

Volatility and Risk

KWESST Micro Systems has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Informatica has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Valuation & Earnings

This table compares KWESST Micro Systems and Informatica’s top-line 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 4.21 -$6.90 million ($1.04) -0.65
Informatica $1.60 billion 6.66 -$125.28 million ($0.46) -78.22

KWESST Micro Systems has higher earnings, but lower revenue than Informatica. Informatica 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 Informatica’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%
Informatica -7.85% 4.29% 1.79%

Summary

Informatica beats KWESST Micro Systems on 10 of the 14 factors compared between the two stocks.

About KWESST Micro Systems

(Get Free Report)

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 Informatica

(Get Free Report)

Informatica Inc. develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide. Its platform includes a suite of interoperable data management products, including data integration products to ingest, transform, and integrate data; API and application integration products that enable users to create and manage APIs and integration processes for app-to-app synchronization, business process orchestration, B2B partner management, application development, and API management; data quality and observability products to profile, cleanse, standardize, observe, and monitor data to deliver accurate, complete, and consistent data; and master data management products to create an authoritative single source of truth of business-critical data. The company's platform also includes customer and business 360 application that allow business analysts to create 360-degree views of business data domains like customer, product, supplier, reference, and finance with simplified business user experiences; data catalog products that enables customers to quickly find, access, and understand enterprise data using a simple Google-like search experience; governance and privacy products that help users define policies, govern data, and ensure compliance with industry and corporate policies; and a data marketplace that delivers cloud shopping experience for data consumers and enables data sharing and AI models across organizations to facilitate data-driven decision making. It also offers maintenance and professional services. The company sells its products through its direct sales team. The company was founded in 1993 and is headquartered in Redwood City, California.

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