Braze (NASDAQ:BRZE) and ON24 (NYSE:ONTF) Financial Review

ON24 (NYSE:ONTF) and Braze (NASDAQ:BRZE) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Earnings and Valuation

This table compares ON24 and Braze”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON24	$139.31 million	2.49	-$28.85 million	($0.68)	-11.90
Braze	$738.18 million	3.56	-$131.29 million	($1.22)	-19.20

ON24 has higher earnings, but lower revenue than Braze. Braze is trading at a lower price-to-earnings ratio than ON24, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ON24 and Braze’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON24	-20.71%	-16.62%	-10.46%
Braze	-17.78%	-18.75%	-10.60%

Volatility and Risk

ON24 has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Braze has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Institutional & Insider Ownership

83.9% of ON24 shares are owned by institutional investors. Comparatively, 90.5% of Braze shares are owned by institutional investors. 33.0% of ON24 shares are owned by insiders. Comparatively, 18.2% of Braze shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for ON24 and Braze, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON24	1	2	0	0	1.67
Braze	1	1	22	0	2.88

ON24 presently has a consensus price target of $8.10, indicating a potential upside of 0.06%. Braze has a consensus price target of $36.67, indicating a potential upside of 56.51%. Given Braze’s stronger consensus rating and higher probable upside, analysts clearly believe Braze is more favorable than ON24.

Summary

Braze beats ON24 on 8 of the 14 factors compared between the two stocks.

About ON24

ON24, Inc. provides a cloud-based intelligent engagement platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide. The company provides ON24 Elite, for live and interactive webinar experience; ON24 Breakouts, for live breakout room experience that facilitates networking, collaboration, and interactivity between users; ON24 Forums, for live and interactive experience, which facilitates video-to-video interaction between presenters and audiences; ON24 Go Live, for live and interactive video event experience that enables presenters and attendees to engage face-to-face in real-time; and ON24 Virtual Confrence, for live and large scale managed virtual event experience. It also offers ON24 Engagement Hub, for always-on multimedia content experience; ON24 Target, for personalized and curated landing page experience; ON24 Intelligence, for analytics backbone that captures first-person data to power the insights, benchmarking, reporting, and artificial intelligence and machine learning engine; ON24 AI-powered ACE, for enabling hyper-personalization at scale across ON24 experiences; ON24 Connect, for ecosystem of third-party application integrations; and ON24 Services and Platform Support, which provides a portfolio of professional services that provide consulting and support for product and platform adoption. In addition, the company offers consulting services, such as experience management, monitoring and production, implementation, and other support services. It sells its products through direct sales. The company serves technology, financial services, healthcare, industrial and manufacturing, professional services, and business-to-business information service companies. The company was formerly known as NewsDirect, Inc. and changed its name to ON24, Inc. in December 1998. ON24, Inc. was incorporated in 1998 and is headquartered in San Francisco, California.

About Braze

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.