Elastic (NYSE:ESTC) versus Clear Secure (NYSE:YOU) Financial Contrast

Elastic (NYSE:ESTCGet Free Report) and Clear Secure (NYSE:YOUGet Free Report) are both mid-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Elastic has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Clear Secure has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Valuation & Earnings

This table compares Elastic and Clear Secure’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Elastic $1.07 billion 6.05 -$236.16 million ($2.48) -26.79
Clear Secure $437.43 million 8.30 -$65.57 million ($0.72) -32.92

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

Analyst Recommendations

This is a summary of current ratings and target prices for Elastic and Clear Secure, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elastic 0 7 9 0 2.56
Clear Secure 0 3 2 0 2.40

Elastic currently has a consensus target price of $74.19, indicating a potential upside of 11.64%. Clear Secure has a consensus target price of $33.50, indicating a potential upside of 41.32%. Given Clear Secure’s higher probable upside, analysts clearly believe Clear Secure is more favorable than Elastic.

Insider & Institutional Ownership

74.8% of Elastic shares are owned by institutional investors. Comparatively, 62.5% of Clear Secure shares are owned by institutional investors. 18.8% of Elastic shares are owned by insiders. Comparatively, 39.9% of Clear Secure shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Elastic and Clear Secure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elastic -22.09% -46.49% -11.16%
Clear Secure -12.62% -12.36% -6.53%

Summary

Clear Secure beats Elastic on 9 of the 14 factors compared between the two stocks.

About Elastic

(Get Free Report)

Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data. The company's Elastic Stack product portfolio comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Elastic Agent that offers integrated host protection and central management services; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems from a multitude of sources simultaneously. It also provides software solutions on the Elastic Stack that address cases, including search applications, workplace search, logs, metrics, application performance monitoring, synthetic monitoring, security information and event management (SIEM), endpoint security, extended detection and response, and cloud security. The company was incorporated in 2012 and is based in Amsterdam, the Netherlands.

About Clear Secure

(Get Free Report)

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and enhance the experience for existing members. In addition, it provides Reserve powered by CLEAR, a virtual queuing technology that provides users with the choice of how they queue either at home or on the move; and Atlas Certified, an automated solution to verify professional licenses and certification data across industries by communicating with certifying organizations for on-demand, current, and trusted data. The company was founded in 2010 and is headquartered in New York, New York.

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