Braze (NASDAQ:BRZE – Get Free Report) and Udemy (NASDAQ:UDMY – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
Institutional and Insider Ownership
90.5% of Braze shares are owned by institutional investors. Comparatively, 79.5% of Udemy shares are owned by institutional investors. 18.2% of Braze shares are owned by insiders. Comparatively, 2.1% of Udemy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Braze has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Udemy has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Braze | 1 | 1 | 22 | 0 | 2.88 |
| Udemy | 1 | 4 | 3 | 0 | 2.25 |
Braze presently has a consensus target price of $36.90, suggesting a potential upside of 58.73%. Udemy has a consensus target price of $9.17, suggesting a potential upside of 98.84%. Given Udemy’s higher probable upside, analysts clearly believe Udemy is more favorable than Braze.
Earnings and Valuation
This table compares Braze and Udemy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Braze | $738.18 million | 3.57 | -$131.29 million | ($1.22) | -19.06 |
| Udemy | $789.84 million | 0.85 | $3.81 million | $0.02 | 230.50 |
Udemy has higher revenue and earnings than Braze. Braze is trading at a lower price-to-earnings ratio than Udemy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Braze and Udemy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Braze | -17.78% | -18.75% | -10.60% |
| Udemy | 0.48% | 4.84% | 1.68% |
Summary
Udemy beats Braze on 9 of the 14 factors compared between the two stocks.
About Braze
Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.
About Udemy
Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages. Its courses provide learning objectives, such as reskilling or upskilling in technology, business, soft skills, and personal development, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. The company was incorporated in 2010 and is headquartered in San Francisco, California.
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