Analyzing Braze (NASDAQ:BRZE) and MongoDB (NASDAQ:MDB)

MongoDB (NASDAQ:MDB) and Braze (NASDAQ:BRZE) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

89.3% of MongoDB shares are owned by institutional investors. Comparatively, 90.5% of Braze shares are owned by institutional investors. 3.1% of MongoDB shares are owned by company insiders. Comparatively, 18.2% of Braze shares are owned 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.

Valuation and Earnings

This table compares MongoDB and Braze”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MongoDB	$2.01 billion	8.66	-$129.07 million	($1.14)	-186.58
Braze	$593.41 million	4.49	-$103.74 million	($1.01)	-24.98

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

Profitability

This table compares MongoDB and Braze’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MongoDB	-4.09%	-3.16%	-2.05%
Braze	-16.76%	-18.89%	-10.26%

Volatility and Risk

MongoDB has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Braze has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for MongoDB and Braze, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MongoDB	0	10	27	1	2.76
Braze	0	1	20	0	2.95

MongoDB presently has a consensus price target of $283.4571, suggesting a potential upside of 33.27%. Braze has a consensus price target of $44.90, suggesting a potential upside of 77.96%. Given Braze’s stronger consensus rating and higher possible upside, analysts plainly believe Braze is more favorable than MongoDB.

Summary

MongoDB beats Braze on 8 of the 15 factors compared between the two stocks.

About MongoDB

MongoDB, Inc., together with its subsidiaries, provides general purpose database platform worldwide. The company provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premises, or in a hybrid environment; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It offers professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.

About Braze

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.