Contrasting CLPS Incorporation (NASDAQ:CLPS) & Evolv Technologies (NASDAQ:EVLV)

CLPS Incorporation (NASDAQ:CLPS) and Evolv Technologies (NASDAQ:EVLV) 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, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Risk & Volatility

CLPS Incorporation has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Evolv Technologies has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of CLPS Incorporation shares are held by institutional investors. Comparatively, 66.7% of Evolv Technologies shares are held by institutional investors. 58.7% of CLPS Incorporation shares are held by company insiders. Comparatively, 11.3% of Evolv Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares CLPS Incorporation and Evolv Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLPS Incorporation	$164.23 million	0.16	-$7.05 million	N/A	N/A
Evolv Technologies	$145.90 million	8.68	-$33.14 million	($0.21)	-33.57

CLPS Incorporation has higher revenue and earnings than Evolv Technologies.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CLPS Incorporation and Evolv Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLPS Incorporation	1	0	0	0	1.00
Evolv Technologies	1	0	3	2	3.00

Evolv Technologies has a consensus target price of $9.13, suggesting a potential upside of 29.43%. Given Evolv Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Evolv Technologies is more favorable than CLPS Incorporation.

Profitability

This table compares CLPS Incorporation and Evolv Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CLPS Incorporation	N/A	N/A	N/A
Evolv Technologies	-22.71%	-30.45%	-11.58%

Summary

Evolv Technologies beats CLPS Incorporation on 7 of the 13 factors compared between the two stocks.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.

About Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.