Critical Comparison: Tuya (NYSE:TUYA) and UiPath (NYSE:PATH)

UiPath (NYSE:PATH) and Tuya (NYSE:TUYA) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Risk & Volatility

UiPath has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Tuya has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares UiPath and Tuya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UiPath	-6.49%	-4.14%	-2.82%
Tuya	-5.55%	-0.58%	-0.52%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UiPath	$1.41 billion	5.23	-$89.88 million	($0.16)	-83.94
Tuya	$280.97 million	3.01	-$60.31 million	($0.03)	-55.83

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

Insider & Institutional Ownership

62.5% of UiPath shares are owned by institutional investors. Comparatively, 11.5% of Tuya shares are owned by institutional investors. 22.4% of UiPath shares are owned by insiders. Comparatively, 2.1% of Tuya shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for UiPath and Tuya, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UiPath	1	16	2	0	2.05
Tuya	0	0	0	0	0.00

UiPath currently has a consensus target price of $17.50, indicating a potential upside of 30.31%. Given UiPath’s stronger consensus rating and higher probable upside, equities analysts clearly believe UiPath is more favorable than Tuya.

Summary

UiPath beats Tuya on 8 of the 14 factors compared between the two stocks.

About UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.