Comparing SailPoint (NASDAQ:SAIL) and Clearwater Analytics (NYSE:CWAN)

SailPoint (NASDAQ:SAIL) and Clearwater Analytics (NYSE:CWAN) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

50.1% of Clearwater Analytics shares are held by institutional investors. 2.0% of SailPoint shares are held by company insiders. Comparatively, 3.3% of Clearwater Analytics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for SailPoint and Clearwater Analytics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SailPoint	2	3	14	1	2.70
Clearwater Analytics	0	1	9	0	2.90

SailPoint currently has a consensus target price of $25.48, indicating a potential upside of 22.24%. Clearwater Analytics has a consensus target price of $32.67, indicating a potential upside of 64.15%. Given Clearwater Analytics’ stronger consensus rating and higher possible upside, analysts plainly believe Clearwater Analytics is more favorable than SailPoint.

Profitability

This table compares SailPoint and Clearwater Analytics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SailPoint	N/A	-25.45%	-0.50%
Clearwater Analytics	73.74%	3.23%	2.44%

Earnings and Valuation

This table compares SailPoint and Clearwater Analytics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SailPoint	$904.42 million	12.83	-$315.83 million	N/A	N/A
Clearwater Analytics	$451.80 million	12.88	$424.38 million	$1.59	12.52

Clearwater Analytics has lower revenue, but higher earnings than SailPoint.

Summary

Clearwater Analytics beats SailPoint on 9 of the 12 factors compared between the two stocks.

About SailPoint

SailPoint, Inc. delivers solutions to enable comprehensive identity security for the enterprise. Its solutions enable organizations to establish, control, and automate policies that help them define and maintain a robust security posture and achieve regulatory compliance. The company was founded by Mark David McClain in 2005 and is headquartered in Austin, TX.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.