Comparing Yext (NYSE:YEXT) and HeartCore Enterprises (NASDAQ:HTCR)

Yext (NYSE:YEXT) and HeartCore Enterprises (NASDAQ:HTCR) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a summary of current ratings for Yext and HeartCore Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	0	1	2	0	2.67
HeartCore Enterprises	0	0	0	0	N/A

Yext currently has a consensus price target of $11.20, indicating a potential upside of 89.35%. Given Yext’s higher probable upside, research analysts plainly believe Yext is more favorable than HeartCore Enterprises.

Profitability

This table compares Yext and HeartCore Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	-0.65%	-1.87%	-0.56%
HeartCore Enterprises	-13.46%	-19.20%	-9.91%

Valuation and Earnings

This table compares Yext and HeartCore Enterprises’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$404.32 million	1.83	-$2.63 million	($0.02)	-295.75
HeartCore Enterprises	$8.82 million	2.27	-$6.68 million	($0.13)	-7.38

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

Risk and Volatility

Yext has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, HeartCore Enterprises has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Institutional & Insider Ownership

71.0% of Yext shares are owned by institutional investors. Comparatively, 1.7% of HeartCore Enterprises shares are owned by institutional investors. 5.9% of Yext shares are owned by insiders. Comparatively, 63.1% of HeartCore Enterprises shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Yext beats HeartCore Enterprises on 9 of the 12 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company's platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also provides data analytics services that allow enterprise businesses to create web experiences for their clients. In addition, it operates a digital transformation business that provides customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. The company was founded in 2009 and is headquartered in Tokyo, Japan.