Analyzing Tenable (NASDAQ:TENB) & Snowflake (NYSE:SNOW)

Snowflake (NYSE:SNOW) and Tenable (NASDAQ:TENB) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Earnings & Valuation

This table compares Snowflake and Tenable”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snowflake	$3.63 billion	21.01	-$1.29 billion	($4.04)	-55.11
Tenable	$900.02 million	3.29	-$36.30 million	($0.27)	-91.81

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

Analyst Recommendations

This is a breakdown of current recommendations for Snowflake and Tenable, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snowflake	3	3	35	2	2.84
Tenable	1	8	9	0	2.44

Snowflake presently has a consensus price target of $275.32, suggesting a potential upside of 23.67%. Tenable has a consensus price target of $37.94, suggesting a potential upside of 53.04%. Given Tenable’s higher possible upside, analysts clearly believe Tenable is more favorable than Snowflake.

Insider & Institutional Ownership

65.1% of Snowflake shares are held by institutional investors. Comparatively, 89.1% of Tenable shares are held by institutional investors. 6.8% of Snowflake shares are held by company insiders. Comparatively, 1.5% of Tenable shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Snowflake has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Tenable has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Snowflake and Tenable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snowflake	-30.76%	-45.91%	-13.56%
Tenable	-3.44%	N/A	N/A

Summary

Snowflake beats Tenable on 8 of the 15 factors compared between the two stocks.

About Snowflake

Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.

About Tenable

Tenable Holdings, Inc. provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Its platforms include Tenable Vulnerability Management, a cloud-delivered software as a service that provides organizations with a risk-based view of traditional and modern attack surfaces; Tenable Cloud Security, a cloud-native cloud security solutions for security teams to continuously assess the security posture; Tenable Identity Exposure, a solution to secure Active Directory environments; Tenable Web App Scanning, which provides scanning for modern web applications; Tenable Lumin Exposure View, a measurement tool; Tenable Attack Surface Management, an external attack surface management solution; Tenable Security Center, an on-premises solution that provides a risk-based view of an organization’s IT, security and compliance posture; and Tenable OT Security, an operational technology security solution which provides threat detection, asset tracking, vulnerability management, and configuration control capabilities. The company also offers Nessus, a vulnerability assessment solution for cybersecurity industry and enterprise platform; and Nessus Expert, that enables users to programmatically detect cloud infrastructure misconfigurations and vulnerabilities in the design and build phase. Tenable Holdings, Inc. was founded in 2002 and is headquartered in Columbia, Maryland.