AvidXchange (NASDAQ:AVDX) vs. Kingsoft Cloud (NASDAQ:KC) Critical Survey

Kingsoft Cloud (NASDAQ:KC) and AvidXchange (NASDAQ:AVDX) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for Kingsoft Cloud and AvidXchange, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft Cloud	0	1	4	0	2.80
AvidXchange	1	5	6	0	2.42

Kingsoft Cloud currently has a consensus target price of $4.55, indicating a potential upside of 88.80%. AvidXchange has a consensus target price of $11.75, indicating a potential upside of 49.11%. Given Kingsoft Cloud’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Kingsoft Cloud is more favorable than AvidXchange.

Risk & Volatility

Kingsoft Cloud has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, AvidXchange has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Earnings and Valuation

This table compares Kingsoft Cloud and AvidXchange’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsoft Cloud	$6.96 billion	0.09	-$306.53 million	($1.13)	-2.12
AvidXchange	$413.47 million	3.92	-$47.33 million	($0.15)	-52.27

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

Profitability

This table compares Kingsoft Cloud and AvidXchange’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingsoft Cloud	-27.62%	-25.61%	-12.55%
AvidXchange	-3.18%	-0.23%	-0.07%

Insider and Institutional Ownership

13.4% of Kingsoft Cloud shares are held by institutional investors. Comparatively, 80.6% of AvidXchange shares are held by institutional investors. 14.2% of Kingsoft Cloud shares are held by insiders. Comparatively, 10.3% of AvidXchange shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

AvidXchange beats Kingsoft Cloud on 8 of the 14 factors compared between the two stocks.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

About AvidXchange

AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.