EverCommerce (NASDAQ:EVCM) and UiPath (NYSE:PATH) Financial Analysis

UiPath (NYSE:PATH) and EverCommerce (NASDAQ:EVCM) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Risk and Volatility

UiPath has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, EverCommerce has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares UiPath and EverCommerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UiPath	19.58%	7.92%	5.19%
EverCommerce	5.47%	3.37%	1.76%

Insider and Institutional Ownership

62.5% of UiPath shares are owned by institutional investors. Comparatively, 97.9% of EverCommerce shares are owned by institutional investors. 22.4% of UiPath shares are owned by insiders. Comparatively, 10.1% of EverCommerce shares are owned by 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UiPath	$1.61 billion	3.90	$282.33 million	$0.60	20.23
EverCommerce	$588.91 million	3.62	$17.60 million	$0.17	70.82

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

Analyst Recommendations

This is a breakdown of current ratings for UiPath and EverCommerce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UiPath	1	14	2	0	2.06
EverCommerce	2	6	3	0	2.09

UiPath currently has a consensus target price of $13.80, indicating a potential upside of 13.69%. EverCommerce has a consensus target price of $11.25, indicating a potential downside of 6.56%. Given UiPath’s higher probable upside, equities research analysts clearly believe UiPath is more favorable than EverCommerce.

Summary

UiPath beats EverCommerce on 10 of the 14 factors compared between the two stocks.

About UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.

About EverCommerce

EverCommerce Inc., together with its subsidiaries, provides integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company’s solutions include business management software that offers route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions comprising e-invoicing, mobile payments, and integrated payment processing; customer experience solution, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, such as implementation, configuration, installation, or training services. It serves home service professionals, including home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. EverCommerce Inc. was incorporated in 2016 and is headquartered in Denver, Colorado.