Head to Head Contrast: Unity Software (NYSE:U) and VTEX (NYSE:VTEX)

Unity Software (NYSE:U) and VTEX (NYSE:VTEX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Valuation and Earnings

This table compares Unity Software and VTEX’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unity Software	$2.19 billion	3.15	-$822.01 million	($2.24)	-7.87
VTEX	$201.52 million	6.17	-$13.69 million	($0.04)	-169.00

VTEX has lower revenue, but higher earnings than Unity Software. VTEX 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 Recommendations

This is a summary of current recommendations and price targets for Unity Software and VTEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unity Software	2	11	9	0	2.32
VTEX	0	1	5	0	2.83

Unity Software presently has a consensus price target of $35.38, suggesting a potential upside of 100.24%. VTEX has a consensus price target of $8.79, suggesting a potential upside of 29.97%. Given Unity Software’s higher possible upside, analysts clearly believe Unity Software is more favorable than VTEX.

Profitability

This table compares Unity Software and VTEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unity Software	-40.11%	-7.73%	-3.47%
VTEX	-3.87%	-3.32%	-2.38%

Institutional & Insider Ownership

73.5% of Unity Software shares are owned by institutional investors. Comparatively, 63.7% of VTEX shares are owned by institutional investors. 6.3% of Unity Software shares are owned by company insiders. Comparatively, 40.9% of VTEX 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.

Risk and Volatility

Unity Software has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500. Comparatively, VTEX has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Summary

VTEX beats Unity Software on 8 of the 13 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 VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.