Reviewing Expensify (NASDAQ:EXFY) & SolarWinds (NYSE:SWI)

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

Analyst Recommendations

This is a summary of current recommendations for SolarWinds and Expensify, as reported by MarketBeat.

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

SolarWinds currently has a consensus price target of $13.80, indicating a potential upside of 7.23%. Expensify has a consensus price target of $2.63, indicating a potential upside of 19.86%. Given Expensify’s stronger consensus rating and higher possible upside, analysts plainly believe Expensify is more favorable than SolarWinds.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarWinds	$774.29 million	2.80	-$9.11 million	$0.07	183.86
Expensify	$138.53 million	1.37	-$41.46 million	($0.48)	-4.56

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 SolarWinds and Expensify’s net margins, return on equity and return on assets.

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

Volatility & Risk

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

Institutional & Insider Ownership

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

Summary

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

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.

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.