Critical Contrast: Block (NYSE:XYZ) and KORE Group (NYSE:KORE)

Block (NYSE:XYZ) and KORE Group (NYSE:KORE) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Analyst Ratings

This is a summary of recent recommendations for Block and KORE Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Block	1	9	22	4	2.81
KORE Group	1	2	0	0	1.67

Block currently has a consensus target price of $83.09, suggesting a potential upside of 33.72%. KORE Group has a consensus target price of $4.00, suggesting a potential downside of 18.62%. Given Block’s stronger consensus rating and higher probable upside, equities analysts plainly believe Block is more favorable than KORE Group.

Institutional and Insider Ownership

70.4% of Block shares are held by institutional investors. Comparatively, 57.5% of KORE Group shares are held by institutional investors. 10.9% of Block shares are held by insiders. Comparatively, 33.5% of KORE Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Block has a beta of 2.66, meaning that its stock price is 166% more volatile than the S&P 500. Comparatively, KORE Group has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Profitability

This table compares Block and KORE Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Block	12.99%	5.54%	3.24%
KORE Group	-24.51%	N/A	-15.92%

Valuation & Earnings

This table compares Block and KORE Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Block	$24.12 billion	1.57	$2.90 billion	$4.96	12.53
KORE Group	$286.09 million	0.30	-$146.08 million	($3.58)	-1.37

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

Summary

Block beats KORE Group on 14 of the 15 factors compared between the two stocks.

About Block

Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. The company also provides Square Point of Sale software; Cash App, which provides access to the financial system, allowing customers to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup and delivery, to their customers; and Square Capital that facilitates loans to sellers based on real-time payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.

About KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company’s products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.