Analyzing BlackLine (NASDAQ:BL) and Procore Technologies (NYSE:PCOR)

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

Volatility and Risk

Procore Technologies has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, BlackLine has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Profitability

This table compares Procore Technologies and BlackLine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procore Technologies	-6.59%	-2.51%	-1.58%
BlackLine	19.83%	33.14%	4.72%

Analyst Recommendations

This is a breakdown of current recommendations for Procore Technologies and BlackLine, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procore Technologies	0	5	11	1	2.76
BlackLine	2	6	4	0	2.17

Procore Technologies currently has a consensus target price of $69.94, suggesting a potential downside of 1.52%. BlackLine has a consensus target price of $62.60, suggesting a potential upside of 2.37%. Given BlackLine’s higher probable upside, analysts clearly believe BlackLine is more favorable than Procore Technologies.

Earnings and Valuation

This table compares Procore Technologies and BlackLine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procore Technologies	$1.11 billion	9.51	-$189.69 million	($0.50)	-142.04
BlackLine	$590.00 million	6.44	$58.17 million	$0.98	62.40

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

Insider and Institutional Ownership

81.1% of Procore Technologies shares are owned by institutional investors. Comparatively, 95.1% of BlackLine shares are owned by institutional investors. 29.0% of Procore Technologies shares are owned by company insiders. Comparatively, 9.9% of BlackLine shares are owned by company 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.

Summary

BlackLine beats Procore Technologies on 9 of the 15 factors compared between the two stocks.

About Procore Technologies

Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Workforce Management, that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time; and Construction Intelligence, that allows customers to capture, manage, and learn from data for project and portfolio reporting, analytics, and artificial intelligence-guided workflows, as well as to monitor projects and drive informed decision-making for business needs. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.

About BlackLine

BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles individual transactions; task management to create and manage processes and task lists; and financial reporting analytics that enables analysis and validation of financial data. The company's also provides journal entry that allows users to generate, review, and post manual journal entries; variance analysis that monitors and identifies anomalous fluctuations in balance sheet and income statement account balances; consolidation integrity manager that manages the automated system-to-system tie-out process; compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing; and smart close for SAP solution. In addition, it offers blackline cash application, and credit and risk, collections, disputes and deductions, and team and task management, as well as AR intelligence solutions and electronic invoicing and compliance. Further, the company provides intercompany create functionality that stores permissions and business logic exceptions by entity, service, and transaction type; intercompany balance and resolve, which records an organization's intercompany transactions; and netting and settlement that enables open intercompany transactions, which integrate with treasury systems. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. BlackLine, Inc. was incorporated in 2001 and is headquartered in Woodland Hills, California.