Head to Head Analysis: Katapult (NASDAQ:KPLT) and Coursera (NYSE:COUR)

Katapult (NASDAQ:KPLT) and Coursera (NYSE:COUR) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Institutional & Insider Ownership

26.8% of Katapult shares are held by institutional investors. Comparatively, 89.6% of Coursera shares are held by institutional investors. 8.0% of Katapult shares are held by insiders. Comparatively, 16.8% of Coursera shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Katapult and Coursera”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Katapult	$291.76 million	0.12	$1.37 million	($0.15)	-48.00
Coursera	$757.50 million	1.42	-$51.00 million	($0.31)	-20.52

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

Risk & Volatility

Katapult has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Coursera has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Katapult and Coursera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Katapult	1	1	0	0	1.50
Coursera	2	5	8	0	2.40

Katapult presently has a consensus price target of $10.00, suggesting a potential upside of 38.89%. Coursera has a consensus price target of $10.62, suggesting a potential upside of 66.86%. Given Coursera’s stronger consensus rating and higher possible upside, analysts plainly believe Coursera is more favorable than Katapult.

Profitability

This table compares Katapult and Coursera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Katapult	0.47%	-2.70%	1.46%
Coursera	-6.73%	-5.17%	-3.31%

Summary

Coursera beats Katapult on 8 of the 14 factors compared between the two stocks.

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.

About Coursera

Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.