Financial Analysis: N-able (NYSE:NABL) & CXApp (NASDAQ:CXAI)

CXApp (NASDAQ:CXAI) and N-able (NYSE:NABL) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility and Risk

CXApp has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, N-able has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares CXApp and N-able’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CXApp	-368.07%	-106.67%	-51.35%
N-able	-1.99%	3.40%	1.96%

Insider and Institutional Ownership

14.4% of CXApp shares are held by institutional investors. Comparatively, 96.3% of N-able shares are held by institutional investors. 3.3% of CXApp shares are held by insiders. Comparatively, 2.0% of N-able shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares CXApp and N-able”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CXApp	$4.58 million	1.67	-$13.47 million	($0.58)	-0.19
N-able	$511.43 million	1.50	-$17.03 million	($0.05)	-81.50

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CXApp and N-able, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CXApp	1	0	0	0	1.00
N-able	3	2	3	0	2.00

N-able has a consensus price target of $7.55, suggesting a potential upside of 85.28%. Given N-able’s stronger consensus rating and higher probable upside, analysts plainly believe N-able is more favorable than CXApp.

Summary

N-able beats CXApp on 9 of the 14 factors compared between the two stocks.

About CXApp

CXApp Inc. provides a workplace experience platform for enterprise customers. It offers CXApp, a software-as-a-service platform with native mapping, analytics, on-device positioning, and applications technologies for use in various applications, such as workplace experience, employee engagement, desk and meeting room reservations, workplace analytics, occupancy management, content delivery, corporate communications and notifications, event management, live indoor mapping, wayfinding, and navigation. The company was formerly known as KINS Technology Group Inc. and changed its name to CXApp Inc. in March 2023. The company is based in Palo Alto, California.

About N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.