Analyzing nCino (NASDAQ:NCNO) and Tuya (NYSE:TUYA)

Tuya (NYSE:TUYA) and nCino (NASDAQ:NCNO) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tuya and nCino, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	1	1	0	2.50
nCino	1	7	11	1	2.60

Tuya currently has a consensus price target of $3.69, suggesting a potential upside of 58.71%. nCino has a consensus price target of $26.07, suggesting a potential upside of 57.31%. Given Tuya’s higher probable upside, equities analysts plainly believe Tuya is more favorable than nCino.

Profitability

This table compares Tuya and nCino’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tuya	17.99%	5.75%	5.16%
nCino	0.87%	4.75%	3.12%

Insider & Institutional Ownership

11.5% of Tuya shares are held by institutional investors. Comparatively, 94.8% of nCino shares are held by institutional investors. 2.1% of Tuya shares are held by insiders. Comparatively, 5.7% of nCino shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Tuya and nCino”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$321.79 million	3.92	$57.89 million	$0.09	25.83
nCino	$594.78 million	3.19	-$37.88 million	($0.18)	-92.06

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

Risk and Volatility

Tuya has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, nCino has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Summary

nCino beats Tuya on 8 of the 15 factors compared between the two stocks.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.

About nCino

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.