Investors are weighing the merits of two small-cap business services companies, Coursera (NYSE:COUR) and CXApp (NASDAQ:CXAI), to determine which stock presents a more attractive investment opportunity. This analysis will examine various factors including analyst recommendations, profitability, valuation, risk assessment, institutional ownership, and dividends.
Profitability and Analyst Recommendations
A direct comparison of the two companies reveals that Coursera outperforms CXApp in several key profitability metrics. Net margins, return on equity, and return on assets are all crucial indicators of financial health. Recent ratings and price targets for both companies, as reported by MarketBeat.com, suggest a favorable outlook for Coursera among analysts.
Volatility and Risk Assessment
When assessing risk, Coursera exhibits a beta of 1.37, indicating its stock price is 37% more volatile than the S&P 500. In contrast, CXApp has a beta of 0.84, reflecting a 16% lower volatility. This stark difference highlights Coursera’s potential for greater price swings, which could appeal to investors with a higher risk tolerance.
Institutional ownership also paints an interesting picture. Approximately 89.6% of Coursera shares are held by institutional investors, a strong indication of confidence from hedge funds and large money managers. By comparison, only 14.4% of CXApp shares are owned by institutional investors, with 16.8% of Coursera shares held by company insiders versus 11.1% for CXApp.
Valuation and Earnings
In terms of earnings, CXApp demonstrates higher earnings despite lower revenue compared to Coursera. Currently, Coursera is trading at a lower price-to-earnings ratio, suggesting it may be the more affordable option at this moment.
This analysis concludes that Coursera surpasses CXApp in 12 out of 14 factors evaluated, reinforcing its position as the stronger investment choice.
Company Profiles
Coursera, Inc. operates a prominent online educational platform, providing a range of courses, specializations, and online degrees across multiple regions, including the United States, Europe, Africa, and Asia Pacific. Founded in 2011 and headquartered in Mountain View, California, Coursera serves individual learners, businesses, and government entities.
In contrast, CXApp Inc. specializes in providing a workplace experience platform for enterprises. The company offers a software-as-a-service solution that includes features for employee engagement, workplace analytics, and navigation. Established as KINS Technology Group Inc. before rebranding in March 2023, CXApp is based in Palo Alto, California.
As the investment landscape evolves, the analysis of these two companies will continue to be of great interest to investors looking to navigate the complexities of the business services sector.
