Comparing MarketWise (NASDAQ:MKTW) and Tuya (NYSE:TUYA)

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

Risk & Volatility

Tuya has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, MarketWise has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Institutional and Insider Ownership

11.5% of Tuya shares are owned by institutional investors. Comparatively, 23.0% of MarketWise shares are owned by institutional investors. 2.1% of Tuya shares are owned by company insiders. Comparatively, 13.1% of MarketWise shares are owned by company 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 Tuya and MarketWise’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$229.99 million	3.97	-$60.31 million	($0.11)	-16.45
MarketWise	$448.18 million	1.20	$1.78 million	$0.05	32.60

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tuya and MarketWise, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	0	2	0	3.00
MarketWise	0	1	2	0	2.67

Tuya currently has a consensus price target of $2.70, suggesting a potential upside of 49.17%. MarketWise has a consensus price target of $3.50, suggesting a potential upside of 114.72%. Given MarketWise’s higher possible upside, analysts clearly believe MarketWise is more favorable than Tuya.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tuya	-26.23%	-4.66%	-4.27%
MarketWise	0.40%	-0.67%	0.41%

Summary

MarketWise beats Tuya on 11 of the 13 factors compared between the two stocks.

About Tuya

Tuya Inc. offers Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides IoT platform-as-a-service that enables brands, original equipment manufacturers, 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 a wide range of cloud-based value-added services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company sells finished smart devices. It offers its solutions to smart home, smart business, healthcare, education, agriculture, outdoors and sport, and entertainment industries. The company was founded in 2014 and is based in Hangzhou, the People's Republic of China.

About MarketWise

MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.