Critical Review: Adit EdTech Acquisition (NYSE:ADEX) and TaskUs (NASDAQ:TASK)

TaskUs (NASDAQ:TASK) and Adit EdTech Acquisition (NYSE:ADEX) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Profitability

This table compares TaskUs and Adit EdTech Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TaskUs	4.94%	16.91%	8.52%
Adit EdTech Acquisition	N/A	N/A	-63.62%

Earnings & Valuation

This table compares TaskUs and Adit EdTech Acquisition’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaskUs	$924.36 million	1.12	$45.69 million	$0.47	24.75
Adit EdTech Acquisition	$19.62 million	2.44	-$18.66 million	N/A	N/A

TaskUs has higher revenue and earnings than Adit EdTech Acquisition.

Analyst Ratings

This is a summary of recent recommendations for TaskUs and Adit EdTech Acquisition, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaskUs	1	4	2	0	2.14
Adit EdTech Acquisition	0	0	0	0	N/A

TaskUs currently has a consensus target price of $14.50, suggesting a potential upside of 24.36%. Given TaskUs’ higher probable upside, equities research analysts clearly believe TaskUs is more favorable than Adit EdTech Acquisition.

Insider & Institutional Ownership

44.6% of TaskUs shares are owned by institutional investors. Comparatively, 0.8% of Adit EdTech Acquisition shares are owned by institutional investors. 29.3% of TaskUs shares are owned by company insiders. Comparatively, 0.3% of Adit EdTech Acquisition shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

TaskUs has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500. Comparatively, Adit EdTech Acquisition has a beta of -0.34, indicating that its share price is 134% less volatile than the S&P 500.

Summary

TaskUs beats Adit EdTech Acquisition on 10 of the 11 factors compared between the two stocks.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

About Adit EdTech Acquisition

Adit EdTech Acquisition Corp. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses or entities. Adit EdTech Acquisition Corp. was incorporated in 2020 and is based in New York, New York. Adit EdTech Acquisition Corp. operates as a subsidiary of Adit Edtech Sponsor, LLC.