Financial Comparison: nCino (NASDAQ:NCNO) and Temenos (OTCMKTS:TMNSF)

Temenos (OTCMKTS:TMNSF) and nCino (NASDAQ:NCNO) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Earnings & Valuation

This table compares Temenos and nCino’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Temenos	$1.00 billion	4.75	$134.68 million	N/A	N/A
nCino	$476.54 million	7.36	-$42.35 million	($0.38)	-80.68

Temenos has higher revenue and earnings than nCino.

Risk & Volatility

Temenos has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, nCino has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Temenos	N/A	N/A	N/A
nCino	-8.89%	0.31%	0.25%

Analyst Recommendations

This is a summary of recent ratings and price targets for Temenos and nCino, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Temenos	0	0	0	0	N/A
nCino	0	5	7	0	2.58

nCino has a consensus price target of $35.91, indicating a potential upside of 17.12%. Given nCino’s higher probable upside, analysts clearly believe nCino is more favorable than Temenos.

Insider & Institutional Ownership

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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

nCino beats Temenos on 7 of the 11 factors compared between the two stocks.

About Temenos

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.

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.