Temenos Group (OTCMKTS:TMSNY – Get Free Report) and Okta (NASDAQ:OKTA – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Institutional and Insider Ownership
86.6% of Okta shares are held by institutional investors. 4.6% of Okta shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Temenos Group has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Okta has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.
Profitability
This table compares Temenos Group and Okta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Temenos Group | 18.64% | 65.48% | 12.48% |
| Okta | 9.63% | 4.50% | 3.34% |
Earnings and Valuation
This table compares Temenos Group and Okta”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Temenos Group | $1.09 billion | 6.06 | $280.61 million | $3.12 | 30.91 |
| Okta | $3.07 billion | 10.40 | $235.00 million | $1.66 | 110.16 |
Temenos Group has higher earnings, but lower revenue than Okta. Temenos Group is trading at a lower price-to-earnings ratio than Okta, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Temenos Group and Okta, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Temenos Group | 0 | 2 | 0 | 2 | 3.00 |
| Okta | 0 | 10 | 31 | 2 | 2.81 |
Okta has a consensus target price of $202.38, indicating a potential upside of 10.67%. Given Okta’s higher possible upside, analysts plainly believe Okta is more favorable than Temenos Group.
Summary
Okta beats Temenos Group on 7 of the 13 factors compared between the two stocks.
About Temenos Group
Temenos Group is a Swiss financial technology company that develops software for banks and other financial institutions. Founded in Geneva in 1993, the company provides technology for core banking operations, including managing accounts, deposits, lending and customer transactions. Its offerings also cover digital banking, payments and wealth management, helping financial institutions deliver services through online and mobile channels and support activities such as investment and portfolio management.
About Okta
Okta, Inc. provides cloud-based identity and access management services. Its platform helps organizations manage how employees, customers, partners and other users sign in to applications and access digital resources. Okta’s products include single sign-on, multifactor authentication, identity governance and user lifecycle management. Through Auth0, which Okta acquired in 2021, the company also offers tools that developers can use to add identity and authentication features to customer-facing applications.
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