Stem (NYSE:STEM) versus BOX (NYSE:BOX) Head to Head Review
by Renee Jackson · The Cerbat GemBOX (NYSE:BOX – Get Free Report) and Stem (NYSE:STEM – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Valuation and Earnings
This table compares BOX and Stem”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BOX | $1.18 billion | 4.06 | $115.38 million | $0.69 | 50.48 |
| Stem | $156.27 million | 0.29 | $137.76 million | ($8.49) | -0.56 |
Stem has lower revenue, but higher earnings than BOX. Stem is trading at a lower price-to-earnings ratio than BOX, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
BOX has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Stem has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
Institutional & Insider Ownership
86.7% of BOX shares are held by institutional investors. Comparatively, 61.6% of Stem shares are held by institutional investors. 4.0% of BOX shares are held by company insiders. Comparatively, 5.1% of Stem shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares BOX and Stem’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BOX | 10.59% | -20.97% | 4.47% |
| Stem | -49.37% | N/A | -21.85% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for BOX and Stem, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BOX | 1 | 5 | 3 | 0 | 2.22 |
| Stem | 1 | 4 | 0 | 0 | 1.80 |
BOX presently has a consensus price target of $37.80, suggesting a potential upside of 8.52%. Stem has a consensus price target of $7.45, suggesting a potential upside of 56.88%. Given Stem’s higher probable upside, analysts plainly believe Stem is more favorable than BOX.
Summary
BOX beats Stem on 9 of the 14 factors compared between the two stocks.
About BOX
Box, Inc. engages in the provision of an enterprise content platform that enables organizations to securely manage enterprise content while allowing easy, secure access and sharing of this content from anywhere, on any device. Its products include cloud content management, IT and admin controls, Box Governance, Box Zones, Box Relay, Box Shuttle, and Box KeySafe. The company was founded by Aaron Levie, Dylan Smith, Jeff Queisser, and Sam Ghods in March 2005 and is headquartered in Redwood City, CA.
About Stem
Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.