Smartsheet (NYSE:SMAR) and Citrix Systems (NASDAQ:CTXS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Smartsheet and Citrix Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Smartsheet -32.50% -22.03% -13.93%
Citrix Systems 22.65% 93.09% 12.59%

Institutional and Insider Ownership

73.9% of Smartsheet shares are held by institutional investors. Comparatively, 96.7% of Citrix Systems shares are held by institutional investors. 24.7% of Smartsheet shares are held by company insiders. Comparatively, 0.5% of Citrix Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Smartsheet and Citrix Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Smartsheet $177.72 million 32.48 -$53.88 million ($0.62) -79.26
Citrix Systems $3.01 billion 5.28 $681.81 million $4.13 29.55

Citrix Systems has higher revenue and earnings than Smartsheet. Smartsheet is trading at a lower price-to-earnings ratio than Citrix Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Smartsheet and Citrix Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smartsheet 0 2 12 0 2.86
Citrix Systems 1 5 3 0 2.22

Smartsheet currently has a consensus price target of $51.50, indicating a potential upside of 4.80%. Citrix Systems has a consensus price target of $121.44, indicating a potential downside of 0.49%. Given Smartsheet’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Smartsheet is more favorable than Citrix Systems.

Risk and Volatility

Smartsheet has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Citrix Systems has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Summary

Citrix Systems beats Smartsheet on 8 of the 14 factors compared between the two stocks.

Smartsheet Company Profile

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.

Citrix Systems Company Profile

Citrix Systems, Inc. provides workspace, networking, and analytics solutions worldwide. The company offers workspace services, including Citrix Virtual Apps and Desktops, a cloud-enabled app and desktop virtualization solution that gives customers the flexibility to deliver desktops and applications as a service from cloud and on-premises datacenters; and Citrix Virtual Apps that allows Windows and Linux applications to be remotely delivered to Macs, PCs, thin clients, and Android/iOS mobile devices from any cloud, on-premises datacenter, or both. Its workspace services also comprise Citrix Endpoint Management enterprise mobility management solutions; and Citrix Workspace Suite, which provides apps, desktops, branch networking and WAN, enterprise mobility management, and data people need for business productivity. In addition, the company offers networking products comprising Citrix ADC, a software-defined application delivery controller designed for organizations undergoing digital transformation; and Citrix SD-WAN that enhances applications delivered from the legacy data center, cloud, or SaaS. Further, it provides content collaboration offerings that include Citrix Content Collaboration, a cloud-based file sharing and storage solution, which provides enterprise-class data services on various corporate and personal mobile devices for businesses. Additionally, the company offers support, hardware maintenance, professional consulting, and product training and certification services. It markets and licenses its products through resellers, distributors, systems integrators, independent software vendors, original equipment manufacturers, and service providers. The company was formerly known as Citrus Systems, Inc. Citrix Systems, Inc. was founded in 1989 and is headquartered in Fort Lauderdale, Florida.

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