Analyzing Smartsheet (NYSE:SMAR) & Commvault Systems (NASDAQ:CVLT)

Smartsheet (NYSE:SMAR) and Commvault Systems (NASDAQ:CVLT) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Smartsheet and Commvault Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartsheet	1	17	2	0	2.05
Commvault Systems	0	5	5	0	2.50

Smartsheet currently has a consensus price target of $55.82, suggesting a potential downside of 1.14%. Commvault Systems has a consensus price target of $156.44, suggesting a potential downside of 8.30%. Given Smartsheet’s higher probable upside, analysts plainly believe Smartsheet is more favorable than Commvault Systems.

Institutional & Insider Ownership

90.0% of Smartsheet shares are held by institutional investors. Comparatively, 93.5% of Commvault Systems shares are held by institutional investors. 4.5% of Smartsheet shares are held by company insiders. Comparatively, 1.0% of Commvault Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Smartsheet and Commvault Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smartsheet	-0.80%	2.33%	1.12%
Commvault Systems	18.14%	28.69%	8.36%

Earnings & Valuation

This table compares Smartsheet and Commvault Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smartsheet	$958.34 million	8.25	-$104.63 million	($0.06)	-941.17
Commvault Systems	$943.87 million	7.95	$168.91 million	$3.81	44.78

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

Volatility & Risk

Smartsheet has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Commvault Systems has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Summary

Commvault Systems beats Smartsheet on 9 of the 14 factors compared between the two stocks.

About Smartsheet

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.

About Commvault Systems

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.