Contrasting Datasea (NASDAQ:DTSS) and Appian (NASDAQ:APPN)

Appian (NASDAQ:APPN) and Datasea (NASDAQ:DTSS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

52.7% of Appian shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 44.0% of Appian shares are owned by insiders. Comparatively, 50.7% of Datasea shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Appian and Datasea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Appian	-14.95%	-532.05%	-10.88%
Datasea	-26.69%	-618.32%	-245.91%

Volatility & Risk

Appian has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Earnings & Valuation

This table compares Appian and Datasea”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Appian	$617.02 million	3.19	-$92.26 million	($1.26)	-21.08
Datasea	$47.28 million	0.30	-$11.38 million	N/A	N/A

Datasea has lower revenue, but higher earnings than Appian.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Appian and Datasea, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Appian	1	5	1	0	2.00
Datasea	0	0	0	0	0.00

Appian currently has a consensus target price of $35.17, indicating a potential upside of 32.40%. Given Appian’s stronger consensus rating and higher possible upside, equities analysts clearly believe Appian is more favorable than Datasea.

Summary

Appian beats Datasea on 9 of the 12 factors compared between the two stocks.

About Appian

Appian Corporation, a software company that provides low-code design platform in the United States, Mexico, Portugal, and internationally. The company's platform offers artificial intelligence, process automation, data fabric, and process mining. It provides The Appian Platform, an integrated automation platform that enables organizations to design, automate, and optimize mission-critical business processes. The company also offers professional and customer support services. It serves to financial services, government, life sciences, insurance, manufacturing, energy, healthcare, telecommunications, and transportation industries. Appian Corporation was incorporated in 1999 and is headquartered in McLean, Virginia.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.