Okta (NASDAQ:OKTA) & Riskified (NYSE:RSKD) Critical Survey

Riskified (NYSE:RSKD) and Okta (NASDAQ:OKTA) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Valuation & Earnings

This table compares Riskified and Okta”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riskified	$344.64 million	3.96	-$27.57 million	($0.11)	-83.76
Okta	$3.07 billion	12.52	$235.00 million	$1.66	132.54

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

Volatility & Risk

Riskified has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Okta has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Institutional and Insider Ownership

59.0% of Riskified shares are held by institutional investors. Comparatively, 86.6% of Okta shares are held by institutional investors. 17.4% of Riskified shares are held by insiders. Comparatively, 4.6% of Okta shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Riskified and Okta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riskified	-4.23%	-3.93%	-2.79%
Okta	9.63%	4.50%	3.34%

Analyst Ratings

This is a summary of recent ratings and price targets for Riskified and Okta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riskified	3	3	2	0	1.88
Okta	0	11	31	1	2.77

Riskified currently has a consensus target price of $7.17, indicating a potential downside of 22.22%. Okta has a consensus target price of $202.38, indicating a potential downside of 8.01%. Given Okta’s stronger consensus rating and higher probable upside, analysts clearly believe Okta is more favorable than Riskified.

Summary

Okta beats Riskified on 13 of the 15 factors compared between the two stocks.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.

About Okta

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.