Okta (NASDAQ:OKTA – Get Free Report) and Temenos Group (OTCMKTS:TMSNY – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Volatility & Risk
Okta has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Temenos Group has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
Profitability
This table compares Okta and Temenos Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Okta | 9.63% | 4.50% | 3.34% |
| Temenos Group | 18.64% | 65.48% | 12.48% |
Insider and Institutional Ownership
86.6% of Okta shares are owned by institutional investors. 4.6% of Okta shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Okta and Temenos Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Okta | 0 | 10 | 31 | 2 | 2.81 |
| Temenos Group | 0 | 2 | 0 | 2 | 3.00 |
Okta presently has a consensus price target of $202.38, suggesting a potential upside of 13.97%. Given Okta’s higher possible upside, research analysts plainly believe Okta is more favorable than Temenos Group.
Earnings and Valuation
This table compares Okta and Temenos Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Okta | $2.92 billion | 10.63 | $235.00 million | $1.66 | 106.97 |
| Temenos Group | $1.09 billion | 6.03 | $280.61 million | $3.12 | 30.76 |
Temenos Group has lower revenue, but higher earnings than Okta. Temenos Group is trading at a lower price-to-earnings ratio than Okta, indicating that it is currently the more affordable of the two stocks.
Summary
Okta beats Temenos Group on 7 of the 13 factors compared between the two stocks.
About Okta
Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.
About Temenos Group
Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.
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