Financial Contrast: CoreWeave (NASDAQ:CRWV) versus Riskified (NYSE:RSKD)

CoreWeave (NASDAQ:CRWV) and Riskified (NYSE:RSKD) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares CoreWeave and Riskified”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreWeave	$5.13 billion	9.59	-$1.17 billion	($3.20)	-36.70
Riskified	$344.64 million	1.99	-$27.57 million	($0.17)	-27.26

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreWeave	2	11	20	0	2.55
Riskified	1	3	3	0	2.29

CoreWeave currently has a consensus price target of $125.16, indicating a potential upside of 6.58%. Riskified has a consensus price target of $5.96, indicating a potential upside of 28.55%. Given Riskified’s higher probable upside, analysts plainly believe Riskified is more favorable than CoreWeave.

Institutional & Insider Ownership

59.0% of Riskified shares are held by institutional investors. 17.4% of Riskified shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CoreWeave and Riskified’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoreWeave	-22.75%	-33.82%	-3.06%
Riskified	-8.00%	-5.63%	-4.24%

Summary

Riskified beats CoreWeave on 8 of the 13 factors compared between the two stocks.

About CoreWeave

CoreWeave, Inc. engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.