Critical Contrast: SoftwareOne (OTCMKTS:SWONF) & AvidXchange (NASDAQ:AVDX)

SoftwareOne (OTCMKTS:SWONF) and AvidXchange (NASDAQ:AVDX) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoftwareOne	$1.15 billion	1.17	-$1.72 million	N/A	N/A
AvidXchange	$438.94 million	4.70	$8.15 million	($0.05)	-198.80

AvidXchange has lower revenue, but higher earnings than SoftwareOne.

Volatility and Risk

SoftwareOne has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, AvidXchange has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

80.6% of AvidXchange shares are owned by institutional investors. 11.1% of AvidXchange shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SoftwareOne and AvidXchange, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoftwareOne	0	2	0	0	2.00
AvidXchange	2	14	1	0	1.94

AvidXchange has a consensus target price of $10.04, indicating a potential upside of 0.96%. Given AvidXchange’s higher probable upside, analysts clearly believe AvidXchange is more favorable than SoftwareOne.

Profitability

This table compares SoftwareOne and AvidXchange’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoftwareOne	N/A	N/A	N/A
AvidXchange	-1.80%	1.15%	0.39%

Summary

AvidXchange beats SoftwareOne on 8 of the 12 factors compared between the two stocks.

About SoftwareOne

SoftwareONE Holding AG provides software and cloud solutions in Switzerland, Europe, the Middle East, Africa, the United States, Canada, Latin America, and the Asia Pacific. The company develops and delivers the technology solutions that modernise applications and software in the cloud. It serves large enterprises, corporates, small and medium-sized enterprises, and public sector organizations. SoftwareONE Holding AG was founded in 2000 and is headquartered in Stans, Switzerland.

About AvidXchange

AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.