Analyzing Asana (NYSE:ASAN) and Udemy (NASDAQ:UDMY)

Udemy (NASDAQ:UDMY) and Asana (NYSE:ASAN) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

79.5% of Udemy shares are held by institutional investors. Comparatively, 26.2% of Asana shares are held by institutional investors. 2.1% of Udemy shares are held by insiders. Comparatively, 61.3% of Asana shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Udemy has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Asana has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Earnings and Valuation

This table compares Udemy and Asana”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Udemy	$786.57 million	0.95	-$85.29 million	($0.03)	-170.00
Asana	$723.88 million	3.65	-$255.54 million	($0.93)	-11.98

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

Profitability

This table compares Udemy and Asana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Udemy	-0.47%	2.11%	0.73%
Asana	-28.33%	-79.80%	-20.04%

Analyst Recommendations

This is a summary of recent ratings and price targets for Udemy and Asana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Udemy	1	7	3	0	2.18
Asana	5	6	5	1	2.12

Udemy currently has a consensus target price of $9.00, suggesting a potential upside of 76.47%. Asana has a consensus target price of $16.11, suggesting a potential upside of 44.63%. Given Udemy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Udemy is more favorable than Asana.

Summary

Udemy beats Asana on 10 of the 15 factors compared between the two stocks.

About Udemy

Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages. Its courses provide learning objectives, such as reskilling or upskilling in technology, business, soft skills, and personal development, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. The company was incorporated in 2010 and is headquartered in San Francisco, California.

About Asana

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. Its platform helps organizations to orchestrate work from daily tasks to cross-functional strategic initiatives; manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones; and communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights. The company serves customers in various industries, such as technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.