Critical Review: nCino (NASDAQ:NCNO) versus UiPath (NYSE:PATH)

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

Earnings & Valuation

This table compares nCino and UiPath”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nCino	$522.98 million	7.80	-$42.35 million	($0.17)	-207.18
UiPath	$1.41 billion	5.16	-$89.88 million	($0.16)	-82.81

nCino has higher earnings, but lower revenue than UiPath. nCino is trading at a lower price-to-earnings ratio than UiPath, 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 nCino and UiPath, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nCino	0	5	10	0	2.67
UiPath	1	16	2	0	2.05

nCino currently has a consensus price target of $42.50, suggesting a potential upside of 20.67%. UiPath has a consensus price target of $17.50, suggesting a potential upside of 32.08%. Given UiPath’s higher probable upside, analysts plainly believe UiPath is more favorable than nCino.

Volatility and Risk

nCino has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, UiPath has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
nCino	-3.46%	1.62%	1.22%
UiPath	-6.49%	-4.14%	-2.82%

Institutional & Insider Ownership

94.8% of nCino shares are held by institutional investors. Comparatively, 62.5% of UiPath shares are held by institutional investors. 28.4% of nCino shares are held by company insiders. Comparatively, 22.4% of UiPath shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

nCino beats UiPath on 9 of the 14 factors compared between the two stocks.

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.

About UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.