AvidXchange (NASDAQ:AVDX) vs. Kaltura (NASDAQ:KLTR) Critical Survey

AvidXchange (NASDAQ:AVDX) and Kaltura (NASDAQ:KLTR) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Insider and Institutional Ownership

80.6% of AvidXchange shares are owned by institutional investors. Comparatively, 30.8% of Kaltura shares are owned by institutional investors. 10.3% of AvidXchange shares are owned by company insiders. Comparatively, 14.1% of Kaltura shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares AvidXchange and Kaltura’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AvidXchange	-12.43%	-3.84%	-1.16%
Kaltura	-26.47%	-130.47%	-24.04%

Earnings & Valuation

This table compares AvidXchange and Kaltura’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvidXchange	$380.72 million	6.29	-$47.33 million	($0.23)	-50.43
Kaltura	$175.17 million	1.03	-$46.37 million	($0.34)	-3.62

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

Volatility & Risk

AvidXchange has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Kaltura has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for AvidXchange and Kaltura, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvidXchange	1	5	5	0	2.36
Kaltura	1	0	2	0	2.33

AvidXchange currently has a consensus price target of $13.14, suggesting a potential upside of 13.30%. Kaltura has a consensus price target of $3.50, suggesting a potential upside of 184.55%. Given Kaltura’s higher probable upside, analysts plainly believe Kaltura is more favorable than AvidXchange.

Summary

AvidXchange beats Kaltura on 10 of the 14 factors compared between the two stocks.

About AvidXchange

AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.

About Kaltura

Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.