Contrasting Unity Software (NYSE:U) & Procore Technologies (NYSE:PCOR)

Unity Software (NYSE:U) and Procore Technologies (NYSE:PCOR) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares Unity Software and Procore Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unity Software	-28.97%	4.64%	2.16%
Procore Technologies	-2.73%	0.71%	0.41%

Volatility and Risk

Unity Software has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Procore Technologies has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Insider and Institutional Ownership

73.5% of Unity Software shares are owned by institutional investors. Comparatively, 81.1% of Procore Technologies shares are owned by institutional investors. 0.8% of Unity Software shares are owned by insiders. Comparatively, 16.8% of Procore Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Unity Software and Procore Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unity Software	$1.85 billion	10.54	-$402.77 million	($1.36)	-32.58
Procore Technologies	$1.32 billion	5.87	-$100.78 million	($0.26)	-196.51

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

Analyst Ratings

This is a summary of recent recommendations for Unity Software and Procore Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unity Software	1	3	17	2	2.87
Procore Technologies	1	1	16	3	3.00

Unity Software presently has a consensus target price of $45.16, suggesting a potential upside of 1.93%. Procore Technologies has a consensus target price of $70.12, suggesting a potential upside of 37.24%. Given Procore Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Procore Technologies is more favorable than Unity Software.

Summary

Procore Technologies beats Unity Software on 8 of the 15 factors compared between the two stocks.

About Unity Software

Unity Software Inc. operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide. The company was founded in 2004 and is headquartered in San Francisco, California.

About Procore Technologies

Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Workforce Management, that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time; and Construction Intelligence, that allows customers to capture, manage, and learn from data for project and portfolio reporting, analytics, and artificial intelligence-guided workflows, as well as to monitor projects and drive informed decision-making for business needs. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.