Sailpoint Technologies (SAIL) and Square (NYSE:SQ) Head to Head Review

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Sailpoint Technologies (NYSE: SAIL) and Square (NYSE:SQ) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Institutional and Insider Ownership

25.3% of Sailpoint Technologies shares are owned by institutional investors. Comparatively, 51.9% of Square shares are owned by institutional investors. 28.0% of Square shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Sailpoint Technologies and Square, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sailpoint Technologies 0 2 8 0 2.80
Square 3 11 20 0 2.50

Sailpoint Technologies currently has a consensus price target of $24.70, indicating a potential downside of 3.06%. Square has a consensus price target of $49.15, indicating a potential downside of 25.25%. Given Sailpoint Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Sailpoint Technologies is more favorable than Square.

Valuation & Earnings

This table compares Sailpoint Technologies and Square’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sailpoint Technologies $186.06 million 11.94 -$7.59 million $0.04 637.00
Square $2.21 billion 11.90 -$62.81 million ($0.10) -657.50

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

Profitability

This table compares Sailpoint Technologies and Square’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sailpoint Technologies N/A N/A N/A
Square -2.96% -7.03% -2.54%

Summary

Sailpoint Technologies beats Square on 9 of the 13 factors compared between the two stocks.

Sailpoint Technologies Company Profile

SailPoint Technologies Holdings, Inc. designs, develops, and markets identity governance software solutions in North America, Europe, and the Asia Pacific. The company offers on-premises software and cloud-based solutions, which empower organizations to govern the digital identities of employees, contractors, business partners, and other users, as well as manage their constantly changing access rights to enterprise applications and data across hybrid IT environments. Its solutions include IdentityIQ, an on-premises identity governance solution; IdentityNow, a cloud-based multi-tenant governance suite; SecurityIQ, an on-premises identity governance for files solution that secures access to data stored in file servers, collaboration portals, mailboxes, and cloud storage systems; and IdentityAI, a cloud-based identity analytics solution for organizations to detect potential threats before they turn into security breaches. The company sells its products and solutions to commercial enterprises, educational institutions, and governments directly, as well as through resellers. SailPoint Technologies Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.

Square Company Profile

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.

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