Head-To-Head Review: TEMENOS GROUP (OTCMKTS:TMSNY) versus Snap (NYSE:SNAP)

Snap (NYSE:SNAP) and TEMENOS GROUP (OTCMKTS:TMSNY) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Snap and TEMENOS GROUP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap	2	22	5	0	2.10
TEMENOS GROUP	0	1	0	0	2.00

Snap currently has a consensus price target of $34.1615, suggesting a potential upside of 377.78%. Given Snap’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Snap is more favorable than TEMENOS GROUP.

Risk & Volatility

Snap has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, TEMENOS GROUP has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Snap and TEMENOS GROUP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap	-9.69%	-23.32%	-6.91%
TEMENOS GROUP	16.97%	27.07%	7.58%

Insider and Institutional Ownership

47.5% of Snap shares are held by institutional investors. 22.7% of Snap shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Snap and TEMENOS GROUP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap	$5.36 billion	2.23	-$697.86 million	($0.32)	-22.34
TEMENOS GROUP	$1.04 billion	6.23	$177.18 million	N/A	N/A

TEMENOS GROUP has lower revenue, but higher earnings than Snap.

About Snap

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

About TEMENOS GROUP

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.