HashiCorp (NASDAQ:HCP) versus Earlyworks (NASDAQ:ELWS) Critical Comparison

Earlyworks (NASDAQ:ELWS) and HashiCorp (NASDAQ:HCP) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Earlyworks and HashiCorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Earlyworks	0	0	0	0	N/A
HashiCorp	0	10	4	0	2.29

HashiCorp has a consensus price target of $30.77, indicating a potential downside of 6.22%. Given HashiCorp’s higher possible upside, analysts plainly believe HashiCorp is more favorable than Earlyworks.

Valuation and Earnings

This table compares Earlyworks and HashiCorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Earlyworks	$340,000.00	6.29	-$2.81 million	N/A	N/A
HashiCorp	$583.14 million	11.23	-$190.67 million	($0.98)	-33.48

Earlyworks has higher earnings, but lower revenue than HashiCorp.

Profitability

This table compares Earlyworks and HashiCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Earlyworks	N/A	N/A	N/A
HashiCorp	-32.70%	-15.58%	-11.55%

Institutional & Insider Ownership

0.5% of Earlyworks shares are owned by institutional investors. Comparatively, 87.8% of HashiCorp shares are owned by institutional investors. 26.1% of HashiCorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

HashiCorp beats Earlyworks on 6 of the 10 factors compared between the two stocks.

About Earlyworks

Earlyworks Co., Ltd operates as a blockchain-based technology company in Japan. The company builds products, deliver services, and develop solutions based on its proprietary Grid Ledger System to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. It also provides software and system development services; consulting and solution services; blockchain system solution planning; and proposal, design, and development planning services. The company serves the information technology, shipping, real estate, entertainment, cosmetics, and chemical products sectors. Earlyworks Co., Ltd was incorporated in 2018 and is based in Tokyo, Japan.

About HashiCorp

HashiCorp, Inc. engages in the provision of multi-cloud infrastructure automation solutions worldwide. The company offers infrastructure provisioning products, including Terraform, that enables IT operations teams to apply an Infrastructure-as-Code approach, where processes and configuration required to support applications are codified and automated instead of being manual and ticket-based; Packer, that provides a consistent way to define the process of transforming the raw source inputs into a production worthy artifact, across any environment or packaging format; and Vagrant, that allows teams to define how development environments are set up. It also provides security products, such as Vault, a secrets management and data protection product, which enables security teams to apply policies based on application and user identity to govern access to credentials and secure sensitive data; and Boundary, that applies an identity-based approach to privileged access management and unifies the controls to a single system. In addition, the company offers Consul, an application-centric networking automation product that enables practitioners to manage application traffic, security teams to secure and restrict access between applications, and operations teams to automate the underlying network infrastructure; Nomad, a scheduler and workload orchestrator, which provides practitioners with a self-service interface to manage the application lifecycle; and Waypoint, an application delivery product that provides a developer-focused workflow for the build, deploy, and release process. Further, it provides HashiCorp Cloud Platform, a fully-managed cloud platform for multiple products to accelerate enterprise cloud migration by addressing resource and skills gaps, improving operational efficiency, and speeding up deployment time for customers. The company was incorporated in 2012 and is headquartered in San Francisco, California.