Analyzing PowerSchool (NYSE:PWSC) and WalkMe (NASDAQ:WKME)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for WalkMe and PowerSchool, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WalkMe 0 1 7 0 2.88
PowerSchool 0 4 8 0 2.67

WalkMe currently has a consensus target price of $15.75, indicating a potential upside of 72.70%. PowerSchool has a consensus target price of $27.00, indicating a potential upside of 89.34%. Given PowerSchool’s higher possible upside, analysts plainly believe PowerSchool is more favorable than WalkMe.

Profitability

This table compares WalkMe and PowerSchool’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WalkMe -45.72% -33.65% -21.35%
PowerSchool N/A 2.16% 1.05%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WalkMe $193.30 million 3.90 -$95.81 million ($1.76) -5.18
PowerSchool $558.60 million 5.07 -$33.77 million N/A N/A

PowerSchool has higher revenue and earnings than WalkMe.

Institutional & Insider Ownership

85.5% of WalkMe shares are owned by institutional investors. 0.7% of PowerSchool shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

PowerSchool beats WalkMe on 9 of the 11 factors compared between the two stocks.

About WalkMe

(Get Rating)

WalkMe Ltd. provides cloud-based digital adoption platform in the United States and internationally. Its digital adoption platform enables organizations to measure, drive, and act to maximize the impact of their digital transformation and accelerate the return on their software investment. The company was formerly known as Make Tutorial Ltd. and changed its name to WalkMe Ltd. in March 2012. WalkMe Ltd. was incorporated in 2011 and is headquartered in Tel Aviv-Yafo, Israel.

About PowerSchool

(Get Rating)

PowerSchool Holdings, Inc. provides cloud-based software to the K-12 education market. Its solution is embedded in school workflows and is used on daily basis by educators, students, administrators, and parents in schools and districts representing approximately 45 million students worldwide. Its cloud-based technology platform helps schools and districts manage state reporting and related compliance, special education, finance, human resource, talent, registration, attendance, funding, learning, instruction, grading, college and career readiness, assessments, and analytics. The company serves state departments of education, public school districts, charter schools, independent schools, virtual schools, and others. PowerSchool Holdings, Inc. was founded in 1997 and is headquartered in Folsom, California. PowerSchool Holdings, Inc. was a former subsidiary of Pearson Education Limited.

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