Analyzing SolarWinds (NYSE:SWI) & Tenet Fintech Group (OTCMKTS:PKKFF)

Tenet Fintech Group (OTCMKTS:PKKFF) and SolarWinds (NYSE:SWI) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Tenet Fintech Group and SolarWinds, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenet Fintech Group	0	0	0	0	N/A
SolarWinds	0	4	0	0	2.00

SolarWinds has a consensus target price of $14.00, indicating a potential upside of 8.15%. Given SolarWinds’ higher probable upside, analysts plainly believe SolarWinds is more favorable than Tenet Fintech Group.

Earnings & Valuation

This table compares Tenet Fintech Group and SolarWinds’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenet Fintech Group	$31.17 million	0.41	-$56.92 million	($0.48)	-0.18
SolarWinds	$774.29 million	2.81	-$9.11 million	$0.07	184.93

SolarWinds has higher revenue and earnings than Tenet Fintech Group. Tenet Fintech Group is trading at a lower price-to-earnings ratio than SolarWinds, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tenet Fintech Group and SolarWinds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenet Fintech Group	-224.05%	-58.95%	-39.98%
SolarWinds	2.96%	7.14%	3.04%

Volatility and Risk

Tenet Fintech Group has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, SolarWinds has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

0.3% of Tenet Fintech Group shares are owned by institutional investors. Comparatively, 94.0% of SolarWinds shares are owned by institutional investors. 2.0% of SolarWinds shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

SolarWinds beats Tenet Fintech Group on 11 of the 12 factors compared between the two stocks.

About Tenet Fintech Group

Tenet Fintech Group Inc., through its subsidiaries, provides various analytics and AI-based services to small-and-medium businesses and financial institutions. It offers Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. The company was formerly known as Peak Fintech Group Inc. and changed its name to Tenet Fintech Group Inc. in November 2021. Tenet Fintech Group Inc. was incorporated in 2008 and is headquartered in Toronto, Canada.

About SolarWinds

SolarWinds Corporation provides information technology (IT) management software products in the United States and internationally. It provides a suite of network management software that offers real-time visibility into network utilization and bandwidth, as well as the ability to detect, diagnose, and resolve network performance problems; and a suite of infrastructure management products, which monitors and analyzes the performance of applications and their supporting infrastructure, including servers, physical, virtual and cloud infrastructure, storage, and databases. The company also provides automated network configuration, log and event management, security information and event management, access rights management, identity monitoring, server configuration monitoring and patching, and secure gateway and file transfer products; a suite of application performance management software that enables visibility into log data, cloud infrastructure metrics, applications, tracing, and digital experiences; and service management software that offers ITIL-compliant service desk solutions for various companies. In addition, it offers a suite of database performance management software that monitors, analyzes, diagnoses, and optimizes database performance and operations for the Microsoft data platform, as well as other database management system platforms; traditional, open-source, and cloud-native databases hosted on-premises, in the cloud, and hybrid models. It markets and sells its products directly to network and systems engineers, database administrators, storage administrators, DevOps, SecOps, and service desk professionals. The company was formerly known as SolarWinds Parent, Inc. and changed its name to SolarWinds Corporation in May 2018. SolarWinds Corporation was founded in 1999 and is headquartered in Austin, Texas.