Financial Analysis: Commvault Systems (NASDAQ:CVLT) versus VTEX (NYSE:VTEX)
by Sarita Garza · The Markets DailyCommvault Systems (NASDAQ:CVLT – Get Free Report) and VTEX (NYSE:VTEX – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Profitability
This table compares Commvault Systems and VTEX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Commvault Systems | 20.19% | 32.16% | 8.53% |
| VTEX | 1.51% | 1.36% | 0.97% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Commvault Systems and VTEX, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Commvault Systems | 0 | 3 | 4 | 0 | 2.57 |
| VTEX | 0 | 0 | 5 | 0 | 3.00 |
Commvault Systems currently has a consensus price target of $140.00, suggesting a potential downside of 7.79%. VTEX has a consensus price target of $10.40, suggesting a potential upside of 42.08%. Given VTEX’s stronger consensus rating and higher probable upside, analysts clearly believe VTEX is more favorable than Commvault Systems.
Volatility and Risk
Commvault Systems has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, VTEX has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
Insider and Institutional Ownership
93.5% of Commvault Systems shares are owned by institutional investors. Comparatively, 63.7% of VTEX shares are owned by institutional investors. 1.0% of Commvault Systems shares are owned by insiders. Comparatively, 40.9% of VTEX shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Commvault Systems and VTEX”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Commvault Systems | $865.77 million | 7.68 | $168.91 million | $3.76 | 40.38 |
| VTEX | $220.54 million | 6.11 | -$13.69 million | ($0.04) | -183.00 |
Commvault Systems has higher revenue and earnings than VTEX. VTEX is trading at a lower price-to-earnings ratio than Commvault Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Commvault Systems beats VTEX on 9 of the 14 factors compared between the two stocks.
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.
About VTEX
VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.