Analyzing Pony AI (NASDAQ:PONY) and nCino (NASDAQ:NCNO)

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

Volatility and Risk

nCino has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Pony AI has a beta of 3.87, suggesting that its stock price is 287% more volatile than the S&P 500.

Valuation and Earnings

This table compares nCino and Pony AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nCino	$594.78 million	3.85	$5.18 million	$0.30	72.14
Pony AI	$90.00 million	32.56	-$133.97 million	($0.36)	-18.74

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
nCino	5.40%	7.71%	4.83%
Pony AI	-118.47%	-14.86%	-13.97%

Institutional and Insider Ownership

94.8% of nCino shares are held by institutional investors. 1.9% of nCino shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for nCino and Pony AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nCino	1	5	11	1	2.67
Pony AI	1	2	7	0	2.60

nCino currently has a consensus price target of $24.38, indicating a potential upside of 12.67%. Pony AI has a consensus price target of $19.57, indicating a potential upside of 190.21%. Given Pony AI’s higher possible upside, analysts clearly believe Pony AI is more favorable than nCino.

Summary

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

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.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.