Confluent (NASDAQ:CFLT) & iLearningEngines (NASDAQ:AILE) Critical Review

Confluent (NASDAQ:CFLT) and iLearningEngines (NASDAQ:AILE) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

78.1% of Confluent shares are held by institutional investors. Comparatively, 32.9% of iLearningEngines shares are held by institutional investors. 13.8% of Confluent shares are held by company insiders. Comparatively, 61.5% of iLearningEngines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Confluent and iLearningEngines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Confluent	$865.59 million	6.94	-$442.75 million	($1.25)	-15.12
iLearningEngines	$360.77 million	0.58	-$5.85 million	N/A	N/A

iLearningEngines has lower revenue, but higher earnings than Confluent.

Profitability

This table compares Confluent and iLearningEngines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Confluent	-42.70%	-37.78%	-12.81%
iLearningEngines	N/A	N/A	-6.20%

Risk & Volatility

Confluent has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, iLearningEngines has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Confluent and iLearningEngines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Confluent	1	7	21	1	2.73
iLearningEngines	0	0	2	0	3.00

Confluent currently has a consensus price target of $29.97, indicating a potential upside of 58.55%. iLearningEngines has a consensus price target of $19.50, indicating a potential upside of 1,158.06%. Given iLearningEngines’ stronger consensus rating and higher possible upside, analysts plainly believe iLearningEngines is more favorable than Confluent.

Summary

iLearningEngines beats Confluent on 7 of the 13 factors compared between the two stocks.

About Confluent

Confluent, Inc. operates a data streaming platform in the United States and internationally. The company provides platforms that allow customers to connect their applications, systems, and data layers, such as Confluent Cloud, a managed cloud-native software-as-a-service; and Confluent Platform, an enterprise-grade self-managed software. It offers connectors for existing applications, and IT and cloud infrastructure; Apache Flink services that allows teams to create reusable data streams that can be delivered real-time; ksqlDB, a data-in-motion database that allows users to build data-in-motion applications using a few SQL statements; stream governance, a managed data governance suite that is designed for the intricacies of streaming data, which allows teams to accelerate data streaming initiatives without bypassing controls for risk management and regulatory compliance; and stream designer which builds streaming data pipelines visually. In addition, the company offers professional services comprising packaged and residency offerings; education offerings consisting of instructor-led and self-paced training and certification guidance, technical resources, and access to hands-on training and certification exams; and certification programs. It serves banking and financial services industries, as well as retail and e-commerce, manufacturing, automotive, communication service providers, gaming, public sector, insurance, and technology industries. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.

About iLearningEngines

iLearningEngines, Inc. operates AI-powered learning automation and information intelligence for corporate and educational use. The company's AI and learning automation platform is used by enterprises to productize enterprise knowledge for consumption throughout the enterprise. Its outcome-based training has deployed in regulated and detail-oriented vertical markets, such as healthcare, education, insurance, retail, oil and gas/energy, manufacturing, and government. The company was founded in 2010 and is headquartered in Bethesda, Maryland.