Financial Analysis: MongoDB (NASDAQ:MDB) versus SmartRent (NYSE:SMRT)

SmartRent (NYSE:SMRT) and MongoDB (NASDAQ:MDB) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Volatility and Risk

SmartRent has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, MongoDB has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for SmartRent and MongoDB, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartRent	1	2	0	0	1.67
MongoDB	0	6	26	3	2.91

SmartRent currently has a consensus price target of $1.20, suggesting a potential upside of 0.42%. MongoDB has a consensus price target of $471.81, suggesting a potential upside of 10.32%. Given MongoDB’s stronger consensus rating and higher possible upside, analysts plainly believe MongoDB is more favorable than SmartRent.

Institutional and Insider Ownership

59.4% of SmartRent shares are owned by institutional investors. Comparatively, 89.3% of MongoDB shares are owned by institutional investors. 2.3% of SmartRent shares are owned by insiders. Comparatively, 2.6% of MongoDB shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares SmartRent and MongoDB”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartRent	$152.33 million	1.50	-$60.56 million	($0.10)	-11.95
MongoDB	$2.46 billion	13.98	-$71.15 million	$0.71	602.38

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

Profitability

This table compares SmartRent and MongoDB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartRent	-12.97%	-8.50%	-6.27%
MongoDB	2.12%	1.06%	0.84%

Summary

MongoDB beats SmartRent on 14 of the 15 factors compared between the two stocks.

About SmartRent

SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.

About MongoDB

MongoDB, Inc., together with its subsidiaries, provides general purpose database platform worldwide. The company provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premises, or in a hybrid environment; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It offers professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.