Analyzing Okta (NASDAQ:OKTA) and CLPS Incorporation (NASDAQ:CLPS)

CLPS Incorporation (NASDAQ:CLPS) and Okta (NASDAQ:OKTA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

0.2% of CLPS Incorporation shares are held by institutional investors. Comparatively, 86.6% of Okta shares are held by institutional investors. 58.7% of CLPS Incorporation shares are held by company insiders. Comparatively, 7.0% of Okta shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CLPS Incorporation and Okta”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLPS Incorporation	$142.81 million	0.25	-$2.33 million	N/A	N/A
Okta	$2.26 billion	7.34	-$355.00 million	($0.35)	-277.09

CLPS Incorporation has higher earnings, but lower revenue than Okta.

Volatility and Risk

CLPS Incorporation has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Okta has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares CLPS Incorporation and Okta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CLPS Incorporation	N/A	N/A	N/A
Okta	-1.54%	0.47%	0.32%

Analyst Recommendations

This is a breakdown of current ratings and target prices for CLPS Incorporation and Okta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLPS Incorporation	0	0	0	0	0.00
Okta	1	15	16	0	2.47

Okta has a consensus target price of $105.45, indicating a potential upside of 8.74%. Given Okta’s stronger consensus rating and higher probable upside, analysts plainly believe Okta is more favorable than CLPS Incorporation.

Summary

Okta beats CLPS Incorporation on 9 of the 12 factors compared between the two stocks.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.

About Okta

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.