Contrasting Cognyte Software (NASDAQ:CGNT) & Xunlei (NASDAQ:XNET)

Cognyte Software (NASDAQ:CGNT) and Xunlei (NASDAQ:XNET) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Cognyte Software and Xunlei, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognyte Software	0	2	0	0	2.00
Xunlei	0	0	0	0	0.00

Cognyte Software presently has a consensus price target of $9.00, indicating a potential upside of 0.45%. Given Cognyte Software’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cognyte Software is more favorable than Xunlei.

Valuation & Earnings

This table compares Cognyte Software and Xunlei”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cognyte Software	$350.63 million	1.84	-$15.57 million	($0.17)	-52.71
Xunlei	$331.61 million	0.94	$14.23 million	($0.06)	-83.67

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

Insider & Institutional Ownership

72.9% of Cognyte Software shares are held by institutional investors. Comparatively, 5.1% of Xunlei shares are held by institutional investors. 62.7% of Cognyte Software shares are held by company insiders. Comparatively, 21.7% of Xunlei 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.

Profitability

This table compares Cognyte Software and Xunlei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cognyte Software	-3.95%	-13.30%	-6.01%
Xunlei	4.65%	4.47%	3.13%

Volatility & Risk

Cognyte Software has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Xunlei has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Summary

Cognyte Software beats Xunlei on 7 of the 13 factors compared between the two stocks.

About Cognyte Software

Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies. Cognyte Software Ltd. was incorporated in 2020 and is headquartered in Herzliya, Israel.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.