Contrasting Commvault Systems (NASDAQ:CVLT) & Smartsheet (NYSE:SMAR)

Commvault Systems (NASDAQ:CVLT) and Smartsheet (NYSE:SMAR) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

93.5% of Commvault Systems shares are held by institutional investors. Comparatively, 90.0% of Smartsheet shares are held by institutional investors. 1.0% of Commvault Systems shares are held by insiders. Comparatively, 4.5% of Smartsheet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Commvault Systems and Smartsheet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commvault Systems	18.14%	28.69%	8.36%
Smartsheet	-0.80%	2.33%	1.12%

Earnings and Valuation

This table compares Commvault Systems and Smartsheet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commvault Systems	$943.87 million	7.88	$168.91 million	$3.81	44.37
Smartsheet	$958.34 million	8.25	-$104.63 million	($0.06)	-941.17

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

Analyst Ratings

This is a summary of recent ratings and target prices for Commvault Systems and Smartsheet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commvault Systems	0	5	5	0	2.50
Smartsheet	0	17	2	0	2.11

Commvault Systems presently has a consensus price target of $156.44, indicating a potential downside of 7.45%. Smartsheet has a consensus price target of $56.50, indicating a potential upside of 0.05%. Given Smartsheet’s higher possible upside, analysts clearly believe Smartsheet is more favorable than Commvault Systems.

Volatility & Risk

Commvault Systems has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Smartsheet has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Summary

Commvault Systems beats Smartsheet 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 Smartsheet

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.