Contrasting Yext (NYSE:YEXT) and Adit EdTech Acquisition (NYSE:ADEX)

Adit EdTech Acquisition (NYSE:ADEX) and Yext (NYSE:YEXT) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings for Adit EdTech Acquisition and Yext, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adit EdTech Acquisition	0	0	0	0	N/A
Yext	0	1	2	0	2.67

Yext has a consensus target price of $11.95, suggesting a potential upside of 80.79%. Given Yext’s higher probable upside, analysts clearly believe Yext is more favorable than Adit EdTech Acquisition.

Valuation & Earnings

This table compares Adit EdTech Acquisition and Yext’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adit EdTech Acquisition	N/A	N/A	$4.83 million	N/A	N/A
Yext	$400.85 million	2.05	-$65.94 million	($0.19)	-34.79

Adit EdTech Acquisition has higher earnings, but lower revenue than Yext.

Risk & Volatility

Adit EdTech Acquisition has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, Yext has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Institutional & Insider Ownership

18.5% of Adit EdTech Acquisition shares are owned by institutional investors. Comparatively, 71.5% of Yext shares are owned by institutional investors. 0.3% of Adit EdTech Acquisition shares are owned by insiders. Comparatively, 5.9% of Yext shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Adit EdTech Acquisition and Yext’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adit EdTech Acquisition	N/A	-20.12%	-0.81%
Yext	-5.94%	-17.83%	-4.97%

Summary

Yext beats Adit EdTech Acquisition on 7 of the 10 factors compared between the two stocks.

About Adit EdTech Acquisition

Adit EdTech Acquisition Corp. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses or entities. Adit EdTech Acquisition Corp. was incorporated in 2020 and is based in New York, New York.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to provide answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews, as well as provides customers to update their information and content through its knowledge network of approximately 200 maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks. The platform enables its customers to centralize, control and manage data fields, including store information, such as name, address, phone number and holiday hours; professional information, comprising of headshot, specialties, and education; job information, consisting of title and description; and FAQs and other information. It serves the healthcare, retail, and financial services industries. The company was incorporated in 2006 and is headquartered in New York, New York.