Expensify (NASDAQ:EXFY) & SolarWinds (NYSE:SWI) Critical Analysis

Expensify (NASDAQ:EXFY) and SolarWinds (NYSE:SWI) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

68.4% of Expensify shares are held by institutional investors. Comparatively, 94.0% of SolarWinds shares are held by institutional investors. 17.3% of Expensify shares are held by insiders. Comparatively, 2.0% of SolarWinds shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Expensify has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, SolarWinds has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares Expensify and SolarWinds”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expensify	$138.53 million	1.41	-$41.46 million	($0.48)	-4.71
SolarWinds	$758.74 million	2.86	-$9.11 million	$0.07	183.29

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

Profitability

This table compares Expensify and SolarWinds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expensify	-22.41%	-29.82%	-16.19%
SolarWinds	2.96%	7.14%	3.04%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Expensify and SolarWinds, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expensify	0	2	2	0	2.50
SolarWinds	0	5	0	0	2.00

Expensify presently has a consensus target price of $2.63, suggesting a potential upside of 16.15%. SolarWinds has a consensus target price of $13.80, suggesting a potential upside of 7.56%. Given Expensify’s stronger consensus rating and higher possible upside, research analysts clearly believe Expensify is more favorable than SolarWinds.

Summary

SolarWinds beats Expensify on 9 of the 14 factors compared between the two stocks.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company's platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

About SolarWinds

SolarWinds Corporation provides information technology (IT) management software products in the United States and internationally. It provides a suite of network management software that offers real-time visibility into network utilization and bandwidth, as well as the ability to detect, diagnose, and resolve network performance problems; and a suite of infrastructure management products, which monitors and analyzes the performance of applications and their supporting infrastructure, including servers, physical, virtual and cloud infrastructure, storage, and databases. The company also provides automated network configuration, log and event management, security information and event management, access rights management, identity monitoring, server configuration monitoring and patching, and secure gateway and file transfer products; a suite of application performance management software that enables visibility into log data, cloud infrastructure metrics, applications, tracing, and digital experiences; and service management software that offers ITIL-compliant service desk solutions for various companies. In addition, it offers a suite of database performance management software that monitors, analyzes, diagnoses, and optimizes database performance and operations for the Microsoft data platform, as well as other database management system platforms; traditional, open-source, and cloud-native databases hosted on-premises, in the cloud, and hybrid models. It markets and sells its products directly to network and systems engineers, database administrators, storage administrators, DevOps, SecOps, and service desk professionals. The company was formerly known as SolarWinds Parent, Inc. and changed its name to SolarWinds Corporation in May 2018. SolarWinds Corporation was founded in 1999 and is headquartered in Austin, Texas.