nCino (NASDAQ:NCNO) versus Lightspeed Commerce (NYSE:LSPD) Head to Head Review

Lightspeed Commerce (NYSE:LSPD) and nCino (NASDAQ:NCNO) are both mid-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Insider & Institutional Ownership

68.7% of Lightspeed Commerce shares are owned by institutional investors. Comparatively, 94.8% of nCino shares are owned by institutional investors. 28.4% of nCino shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Lightspeed Commerce and nCino, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightspeed Commerce	0	9	6	1	2.50
nCino	0	3	9	0	2.75

Lightspeed Commerce currently has a consensus price target of $19.88, suggesting a potential upside of 12.03%. nCino has a consensus price target of $38.82, suggesting a potential downside of 6.28%. Given Lightspeed Commerce’s higher probable upside, analysts clearly believe Lightspeed Commerce is more favorable than nCino.

Risk and Volatility

Lightspeed Commerce has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, nCino has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Earnings and Valuation

This table compares Lightspeed Commerce and nCino”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightspeed Commerce	$1.01 billion	2.66	-$163.96 million	($0.89)	-19.93
nCino	$476.54 million	10.04	-$42.35 million	($0.27)	-153.40

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

Profitability

This table compares Lightspeed Commerce and nCino’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lightspeed Commerce	-13.56%	-0.10%	-0.10%
nCino	-5.78%	1.06%	0.82%

Summary

nCino beats Lightspeed Commerce on 10 of the 15 factors compared between the two stocks.

About Lightspeed Commerce

Lightspeed Commerce Inc. engages in sale of cloud-based software subscriptions and payments solutions for small and midsize businesses, retailers, restaurants, and golf course operators in North America, Europe, the United Kingdom, Australia, New Zealand, and internationally. Its Software as a Service platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Retail, Lightspeed eCommerce, Lightspeed Restaurant, and Lightspeed B2B solutions. In addition, it sells hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montreal, Canada.

About nCino

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.