Financial Contrast: Enfusion (NYSE:ENFN) versus VTEX (NYSE:VTEX)

VTEX (NYSE:VTEX) and Enfusion (NYSE:ENFN) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Volatility and Risk

VTEX has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Enfusion has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares VTEX and Enfusion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VTEX	3.97%	3.60%	2.53%
Enfusion	1.70%	6.67%	4.86%

Earnings and Valuation

This table compares VTEX and Enfusion”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VTEX	$226.71 million	3.94	-$13.69 million	$0.07	69.79
Enfusion	$201.61 million	7.00	$6.03 million	$0.03	364.53

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

Analyst Recommendations

This is a summary of current ratings and target prices for VTEX and Enfusion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VTEX	0	1	2	0	2.67
Enfusion	0	2	2	0	2.50

VTEX currently has a consensus target price of $8.07, suggesting a potential upside of 65.13%. Enfusion has a consensus target price of $11.83, suggesting a potential upside of 8.21%. Given VTEX’s stronger consensus rating and higher possible upside, equities analysts clearly believe VTEX is more favorable than Enfusion.

Institutional & Insider Ownership

63.7% of VTEX shares are held by institutional investors. Comparatively, 81.1% of Enfusion shares are held by institutional investors. 40.9% of VTEX shares are held by insiders. Comparatively, 36.4% of Enfusion shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

VTEX beats Enfusion on 7 of the 13 factors compared between the two stocks.

About VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.

About Enfusion

Enfusion, Inc. provides software-as-a-service solutions for investment management industry in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company provides Portfolio Management System, which generates a real-time investment book of record that consists of valuation and risk tools, which allows users to analyze aggregated or decomposed portfolio data for chief investment officers (CIOs) and portfolio managers; and Order and Execution Management System that enables portfolio managers, traders, compliance teams, and analysts to electronically communicate trade orders for a variety of asset classes, manage trade orders, and systemically enforce trading regulations and internal guidelines. It also offers Accounting/General Ledger System, a real-time accounting book of record for chief financial officers, chief operating officers, accountants, and operations teams; Enfusion Analytics System, which enables CIOs, portfolio managers, traders, and analysts to analyze portfolios through time horizons and automate customized visualized reports for internal and external stakeholders; and technology-powered and managed services. Enfusion, Inc. was founded in 1997 and is headquartered in Chicago, Illinois.