Head to Head Comparison: Stem (NYSE:STEM) versus Clarivate (NYSE:CLVT)

Clarivate (NYSE:CLVT) and Stem (NYSE:STEM) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Clarivate and Stem, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clarivate	3	5	0	0	1.63
Stem	2	3	0	0	1.60

Clarivate presently has a consensus price target of $3.22, suggesting a potential upside of 25.16%. Stem has a consensus price target of $20.00, suggesting a potential upside of 64.20%. Given Stem’s higher possible upside, analysts clearly believe Stem is more favorable than Clarivate.

Institutional and Insider Ownership

85.7% of Clarivate shares are held by institutional investors. Comparatively, 61.6% of Stem shares are held by institutional investors. 23.2% of Clarivate shares are held by company insiders. Comparatively, 5.1% of Stem shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Clarivate has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Stem has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Clarivate and Stem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clarivate	-8.19%	8.30%	3.63%
Stem	88.16%	N/A	-21.52%

Valuation & Earnings

This table compares Clarivate and Stem”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clarivate	$2.46 billion	0.67	-$201.10 million	($0.30)	-8.57
Stem	$164.95 million	0.62	-$854.01 million	($9.48)	-1.28

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

Summary

Clarivate beats Stem on 10 of the 13 factors compared between the two stocks.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.