Head-To-Head Contrast: Kaltura (NASDAQ:KLTR) and Affirm (NASDAQ:AFRM)

Affirm (NASDAQ:AFRM) and Kaltura (NASDAQ:KLTR) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

Affirm has a beta of 3.61, meaning that its stock price is 261% more volatile than the S&P 500. Comparatively, Kaltura has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Affirm and Kaltura, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affirm	0	9	20	0	2.69
Kaltura	1	0	1	0	2.00

Affirm presently has a consensus price target of $84.36, suggesting a potential upside of 63.17%. Kaltura has a consensus price target of $3.00, suggesting a potential upside of 97.37%. Given Kaltura’s higher probable upside, analysts clearly believe Kaltura is more favorable than Affirm.

Institutional and Insider Ownership

69.3% of Affirm shares are owned by institutional investors. Comparatively, 30.8% of Kaltura shares are owned by institutional investors. 11.0% of Affirm shares are owned by company insiders. Comparatively, 13.5% of Kaltura 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.

Profitability

This table compares Affirm and Kaltura’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Affirm	7.60%	8.83%	2.45%
Kaltura	-10.01%	-54.84%	-6.44%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affirm	$3.72 billion	4.63	$52.19 million	$0.81	63.83
Kaltura	$178.72 million	1.33	-$31.32 million	($0.12)	-12.67

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

Summary

Affirm beats Kaltura on 12 of the 14 factors compared between the two stocks.

About Affirm

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months. The company has active merchants covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence. Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel and ticketing, apparel, accessories, consumer electronics, and jewelry. Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.

About Kaltura

Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.