Clearwater Analytics (NYSE:CWAN) vs. MultiSensor AI (NASDAQ:MSAI) Critical Survey

Clearwater Analytics (NYSE:CWAN) and MultiSensor AI (NASDAQ:MSAI) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Clearwater Analytics and MultiSensor AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Analytics	1	10	3	0	2.14
MultiSensor AI	1	1	0	1	2.33

Clearwater Analytics currently has a consensus price target of $26.17, suggesting a potential upside of 11.50%. MultiSensor AI has a consensus price target of $3.00, suggesting a potential upside of 900.67%. Given MultiSensor AI’s stronger consensus rating and higher probable upside, analysts plainly believe MultiSensor AI is more favorable than Clearwater Analytics.

Profitability

This table compares Clearwater Analytics and MultiSensor AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearwater Analytics	-5.37%	3.02%	2.10%
MultiSensor AI	-223.26%	-114.91%	-85.08%

Risk and Volatility

Clearwater Analytics has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, MultiSensor AI has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500.

Earnings and Valuation

This table compares Clearwater Analytics and MultiSensor AI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Analytics	$731.37 million	9.48	-$38.81 million	($0.14)	-167.64
MultiSensor AI	$7.40 million	2.14	-$21.50 million	($0.29)	-1.03

MultiSensor AI has lower revenue, but higher earnings than Clearwater Analytics. Clearwater Analytics is trading at a lower price-to-earnings ratio than MultiSensor AI, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

50.1% of Clearwater Analytics shares are owned by institutional investors. Comparatively, 82.3% of MultiSensor AI shares are owned by institutional investors. 3.3% of Clearwater Analytics shares are owned by company insiders. Comparatively, 8.7% of MultiSensor AI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Clearwater Analytics beats MultiSensor AI on 8 of the 15 factors compared between the two stocks.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.

About MultiSensor AI

MultiSensor AI Holdings, Inc. manufactures and distributes multi-sensor systems for thermographic and other use in various industrial applications in the United States and internationally. The company offers sensor devices ranging from small to large handheld designs with built-in displays and controls, fixed-mounted pan-tilt-zoom single- and multi-sensor camera standalone systems, and mobile multi-sensor payload and gimbal systems for unmanned aerial vehicles and unmanned ground vehicles. It also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers operating in the distribution and logistics, manufacturing, utility, and oil and gas sectors. The company was founded in 1995 and is headquartered in Beaumont, Texas.