Appian (NASDAQ:APPN) and Manhattan Associates (NASDAQ:MANH) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares Appian and Manhattan Associates’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Appian | -20.80% | -61.04% | -20.99% |
| Manhattan Associates | 15.58% | 63.78% | 26.92% |
Earnings and Valuation
This table compares Appian and Manhattan Associates’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Appian | $226.74 million | 12.35 | -$49.45 million | ($0.80) | -52.14 |
| Manhattan Associates | $559.16 million | 9.11 | $104.69 million | $1.58 | 50.48 |
Manhattan Associates has higher revenue and earnings than Appian. Appian is trading at a lower price-to-earnings ratio than Manhattan Associates, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Appian has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Manhattan Associates has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Appian and Manhattan Associates, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Appian | 1 | 4 | 1 | 0 | 2.00 |
| Manhattan Associates | 0 | 0 | 3 | 0 | 3.00 |
Appian presently has a consensus price target of $36.18, suggesting a potential downside of 13.25%. Manhattan Associates has a consensus price target of $94.00, suggesting a potential upside of 17.85%. Given Manhattan Associates’ stronger consensus rating and higher probable upside, analysts clearly believe Manhattan Associates is more favorable than Appian.
Institutional & Insider Ownership
41.7% of Appian shares are owned by institutional investors. 50.0% of Appian shares are owned by company insiders. Comparatively, 0.7% of Manhattan Associates shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Manhattan Associates beats Appian on 11 of the 14 factors compared between the two stocks.
Appian Company Profile
Appian Corporation provides low-code software development platform that enables organizations to develop various applications in the United States and internationally. The company’s platform automates the creation of forms, data flows, records, reports, and other software elements that are needed to be manually coded or configured. Its principal software markets include business process management systems, dynamic case management, digital process automation, and low-code development. The company also offers professional and customer support services. Its customers include financial services, life sciences, government, telecommunications, media, energy, manufacturing, and transportation organizations. The company was founded in 1999 and is headquartered in Reston, Virginia.
Manhattan Associates Company Profile
Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. The company offers Manhattan SCALE, a portfolio of logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management, and transportation execution services; and Manhattan Active, a set of enterprise and store omni-channel solutions. It also provides inventory optimization and planning solutions; maintenance services comprising customer support services and software enhancements; professional services, such as solutions planning and implementation, and related consulting services; and training and change management services. In addition, the company resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. It offers products through direct sales personnel, as well as through partnership agreements with various organizations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1990 and is headquartered in Atlanta, Georgia.
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