Analyzing Waystar (NASDAQ:WAY) & nCino (NASDAQ:NCNO)

Waystar (NASDAQ:WAY) and nCino (NASDAQ:NCNO) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Volatility and Risk

Waystar has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, nCino has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Waystar and nCino, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waystar	0	3	16	4	3.04
nCino	1	5	11	2	2.74

Waystar presently has a consensus price target of $35.62, indicating a potential upside of 89.16%. nCino has a consensus price target of $25.21, indicating a potential upside of 59.28%. Given Waystar’s stronger consensus rating and higher probable upside, equities analysts plainly believe Waystar is more favorable than nCino.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Waystar	10.90%	6.99%	4.72%
nCino	0.87%	4.75%	3.10%

Insider & Institutional Ownership

94.8% of nCino shares are held by institutional investors. 3.5% of Waystar shares are held by company insiders. Comparatively, 1.9% of nCino shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Waystar and nCino”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waystar	$1.16 billion	3.12	$112.09 million	$0.67	28.10
nCino	$594.78 million	2.90	$5.18 million	$0.05	316.60

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

Summary

Waystar beats nCino on 12 of the 15 factors compared between the two stocks.

About Waystar

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.

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.