Comparing CoreWeave (NASDAQ:CRWV) & HubSpot (NYSE:HUBS)

CoreWeave (NASDAQ:CRWV) and HubSpot (NYSE:HUBS) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares CoreWeave and HubSpot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoreWeave	-25.57%	-43.07%	-3.84%
HubSpot	3.04%	5.66%	3.04%

Earnings & Valuation

This table compares CoreWeave and HubSpot”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreWeave	$6.23 billion	7.87	-$1.17 billion	($3.11)	-35.22
HubSpot	$3.30 billion	3.43	$45.91 million	$1.91	115.75

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

Institutional & Insider Ownership

90.4% of HubSpot shares are held by institutional investors. 4.0% of HubSpot shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

CoreWeave has a beta of 7.84, indicating that its stock price is 684% more volatile than the S&P 500. Comparatively, HubSpot has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for CoreWeave and HubSpot, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreWeave	2	12	19	0	2.52
HubSpot	2	6	22	0	2.67

CoreWeave presently has a consensus target price of $129.63, suggesting a potential upside of 18.35%. HubSpot has a consensus target price of $311.00, suggesting a potential upside of 40.67%. Given HubSpot’s stronger consensus rating and higher probable upside, analysts clearly believe HubSpot is more favorable than CoreWeave.

Summary

HubSpot beats CoreWeave on 11 of the 14 factors compared between the two stocks.

About CoreWeave

CoreWeave, Inc. engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.

About HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.