Clarivate (NYSE:CLVT) vs. Stem (NYSE:STEM) Financial Survey

Stem (NYSE:STEM) and Clarivate (NYSE:CLVT) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and Volatility

Stem has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Valuation & Earnings

This table compares Stem and Clarivate”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stem	$156.27 million	0.61	$137.76 million	($9.48)	-1.19
Clarivate	$2.46 billion	0.68	-$201.10 million	($0.30)	-8.72

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

Insider and Institutional Ownership

61.6% of Stem shares are owned by institutional investors. Comparatively, 85.7% of Clarivate shares are owned by institutional investors. 10.2% of Stem shares are owned by company insiders. Comparatively, 23.2% of Clarivate shares are owned 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.

Profitability

This table compares Stem and Clarivate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stem	88.16%	N/A	-22.61%
Clarivate	-8.19%	8.30%	3.63%

Analyst Ratings

This is a summary of current recommendations for Stem and Clarivate, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stem	2	3	0	0	1.60
Clarivate	3	5	0	0	1.63

Stem currently has a consensus target price of $20.00, indicating a potential upside of 77.32%. Clarivate has a consensus target price of $3.22, indicating a potential upside of 23.01%. Given Stem’s higher possible upside, equities analysts clearly believe Stem is more favorable than Clarivate.

Summary

Clarivate beats Stem on 9 of the 13 factors compared between the two stocks.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.