Tuya (NYSE:TUYA) and GitLab (NASDAQ:GTLB) Financial Analysis

Tuya (NYSE:TUYA) and GitLab (NASDAQ:GTLB) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Profitability

This table compares Tuya and GitLab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tuya	17.99%	5.75%	5.16%
GitLab	-5.86%	-1.79%	-1.08%

Risk & Volatility

Tuya has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, GitLab has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

11.5% of Tuya shares are owned by institutional investors. Comparatively, 95.0% of GitLab shares are owned by institutional investors. 2.1% of Tuya shares are owned by insiders. Comparatively, 16.4% of GitLab shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Tuya and GitLab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	1	1	0	2.50
GitLab	3	13	12	1	2.38

Tuya currently has a consensus price target of $3.69, indicating a potential upside of 51.54%. GitLab has a consensus price target of $39.62, indicating a potential upside of 74.59%. Given GitLab’s higher possible upside, analysts clearly believe GitLab is more favorable than Tuya.

Earnings and Valuation

This table compares Tuya and GitLab”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$321.79 million	4.10	$57.89 million	$0.09	27.06
GitLab	$955.22 million	4.00	-$55.96 million	($0.35)	-64.83

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

Summary

Tuya beats GitLab on 8 of the 15 factors compared between the two stocks.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.

About GitLab

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.