JFrog (NASDAQ:FROG) & Lightspeed Commerce (NYSE:LSPD) Financial Review

Lightspeed Commerce (NYSE:LSPD) and JFrog (NASDAQ:FROG) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Profitability

This table compares Lightspeed Commerce and JFrog’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lightspeed Commerce	-58.15%	0.37%	0.34%
JFrog	-13.50%	-5.74%	-3.90%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lightspeed Commerce and JFrog, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightspeed Commerce	2	11	5	0	2.17
JFrog	1	3	17	0	2.76

Lightspeed Commerce currently has a consensus price target of $13.33, suggesting a potential upside of 52.47%. JFrog has a consensus price target of $67.05, suggesting a potential upside of 58.62%. Given JFrog’s stronger consensus rating and higher probable upside, analysts clearly believe JFrog is more favorable than Lightspeed Commerce.

Insider & Institutional Ownership

68.7% of Lightspeed Commerce shares are owned by institutional investors. Comparatively, 85.0% of JFrog shares are owned by institutional investors. 14.1% of JFrog shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Lightspeed Commerce has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500. Comparatively, JFrog has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lightspeed Commerce and JFrog”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightspeed Commerce	$1.19 billion	1.01	-$667.20 million	($4.62)	-1.89
JFrog	$531.84 million	9.51	-$71.82 million	($0.62)	-68.18

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

Summary

JFrog beats Lightspeed Commerce on 9 of the 14 factors compared between the two stocks.

About Lightspeed Commerce

Lightspeed Commerce Inc. engages in sale of cloud-based software subscriptions and payments solutions for small and midsize businesses, retailers, restaurants, and golf course operators in North America, Europe, the United Kingdom, Australia, New Zealand, and internationally. Its Software as a Service platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Retail, Lightspeed eCommerce, Lightspeed Restaurant, and Lightspeed B2B solutions. In addition, it sells hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montreal, Canada.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.