nCino (NCNO) & Its Rivals Critical Review

nCino (NASDAQ:NCNO) is one of 954 public companies in the “Software” industry, but how does it compare to its rivals? We will compare nCino to related businesses based on the strength of its earnings, valuation, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

94.8% of nCino shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 1.9% of nCino shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares nCino and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
nCino	$594.78 million	$5.18 million	75.60
nCino Competitors	$1.89 billion	$385.94 million	111.27

nCino’s rivals have higher revenue and earnings than nCino. nCino is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares nCino and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
nCino	5.40%	7.71%	4.83%
nCino Competitors	-612.31%	21.01%	-8.89%

Risk and Volatility

nCino has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, nCino’s rivals have a beta of 1.27, indicating that their average stock price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for nCino and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nCino	1	6	9	1	2.59
nCino Competitors	5713	21411	44672	1491	2.57

nCino presently has a consensus price target of $23.42, indicating a potential upside of 3.25%. As a group, “Software” companies have a potential upside of 27.85%. Given nCino’s rivals higher possible upside, analysts clearly believe nCino has less favorable growth aspects than its rivals.

Summary

nCino rivals beat nCino on 8 of the 13 factors compared.

About nCino

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.