In the competitive landscape of technology, Informatica Inc. (INFA) and Elastic N.V. (ESTC) stand out as key players in the software sector. While both companies operate within the tech industry, they focus on different areas: Informatica specializes in data management and integration, whereas Elastic offers powerful search and analytics solutions. With their overlapping markets and innovative strategies, I aim to evaluate which company presents a more compelling opportunity for investors like you. Let’s dive deeper into their potential and performance.
Table of contents
Company Overview
Informatica Inc. Overview
Informatica Inc. is a leader in data management solutions, specializing in an artificial intelligence-powered platform designed to unify and manage data across diverse multi-cloud and hybrid environments. Founded in 1993 and headquartered in Redwood City, California, Informatica’s suite of products includes data integration, quality management, and governance tools that enable enterprises to create a comprehensive view of their data. With a market cap of approximately $7.54B, the company aims to empower organizations to harness their data for analytics, compliance, and business intelligence, ultimately reducing errors and improving operational efficiency.
Elastic N.V. Overview
Founded in 2012 and based in Mountain View, California, Elastic N.V. focuses on providing advanced search and analytics solutions through its Elastic Stack. The company offers a range of products including Elasticsearch, Kibana, and Logstash, which are designed to help organizations ingest, analyze, and visualize data from multiple sources. With a market cap of around $7.45B, Elastic caters to a diverse clientele seeking to leverage data-driven insights for a competitive edge in their respective markets. Their technology is optimized for both public and private cloud environments, enhancing flexibility and scalability.
Key Similarities and Differences
Both Informatica and Elastic operate within the technology sector, focusing on data management and analytics solutions. However, Informatica emphasizes comprehensive data governance and integration, while Elastic prioritizes search capabilities and real-time analytics. This distinction reflects their unique approaches to data utilization within enterprises.
Income Statement Comparison
In this section, I present a comparative analysis of the income statements for Informatica Inc. and Elastic N.V. for their most recent fiscal years, highlighting key financial metrics.
| Metric | Informatica Inc. (INFA) | Elastic N.V. (ESTC) |
|---|---|---|
| Revenue | 1.64B | 1.48B |
| EBITDA | 338M | 6M |
| EBIT | 199M | -6M |
| Net Income | 9.93M | -108M |
| EPS | 0.0329 | -1.04 |
Interpretation of Income Statement
In the most recent fiscal years, Informatica has shown an upward trend in revenue, increasing from 1.60B to 1.64B, while Elastic’s revenue rose from 1.27B to 1.48B. However, despite revenue growth, Elastic reported a substantial net loss, indicating ongoing challenges in managing expenses. Informatica, on the other hand, achieved a positive net income for the first time in several years, suggesting improved operational efficiency and margin stability. Overall, while both companies are expanding their top lines, the profitability narrative diverges significantly, with Informatica emerging as a more favorable option for investors focused on earnings resilience.
Financial Ratios Comparison
The table below presents a comparison of financial metrics between Informatica Inc. (INFA) and Elastic N.V. (ESTC) based on the most recent data available.
| Metric | INFA | ESTC |
|---|---|---|
| ROE | 0.43% | -11.66% |
| ROIC | 0.56% | -11.80% |
| P/E | 788 | -83 |
| P/B | 3.39 | 9.64 |
| Current Ratio | 1.82 | 1.92 |
| Quick Ratio | 1.82 | 1.92 |
| D/E | 0.81 | 0.64 |
| Debt-to-Assets | 0.35 | 0.23 |
| Interest Coverage | 0.87 | -2.17 |
| Asset Turnover | 0.31 | 0.57 |
| Fixed Asset Turnover | 8.75 | 51.28 |
| Payout ratio | 0.001 | 0 |
| Dividend yield | 0.00015% | 0% |
Interpretation of Financial Ratios
Informatica displays a positive return on equity (ROE) and a current ratio above 1, indicating some financial stability. However, its high P/E ratio suggests overvaluation relative to earnings. Elastic, on the other hand, shows negative returns across key metrics and a concerning interest coverage ratio, indicating potential liquidity issues. Investors should approach Elastic with caution due to its financial instability, while Informatica may offer more reliability, albeit with valuation concerns.
Dividend and Shareholder Returns
Informatica Inc. (INFA) currently does not pay dividends, reflecting its focus on growth and reinvestment. The negligible dividend payout ratio underscores this strategy, while the company has initiated share buybacks, highlighting a commitment to enhancing shareholder returns. Conversely, Elastic N.V. (ESTC) also refrains from distributing dividends, prioritizing reinvestment during its high-growth phase. Both companies aim to create long-term shareholder value, albeit through different strategies, which appears sustainable given their respective market positions.
Strategic Positioning
Informatica Inc. (INFA) and Elastic N.V. (ESTC) operate in the competitive software sector, focusing on data management and search analytics, respectively. Informatica holds a substantial market share with its AI-driven data integration platform, which faces pressure from burgeoning competitors and technological advancements. Elastic, with its robust Elastic Stack, continues to innovate but must navigate similar competitive challenges and evolving consumer demands. Both companies are poised to leverage their unique strengths amidst ongoing market disruptions.
Stock Comparison
In the past year, both Informatica Inc. (INFA) and Elastic N.V. (ESTC) have experienced significant price fluctuations, reflecting shifting market dynamics and investor sentiment.
Trend Analysis
Informatica Inc. (INFA) has seen a price change of -12.68% over the past year, indicating a bearish trend. The stock has shown notable volatility with a standard deviation of 4.46. The highest price recorded was 38.48, while the lowest was 16.67. Recently, between September 7, 2025, and November 23, 2025, the trend remains neutral with a slight increase of 0.08%. However, the overall trend is characterized by acceleration, suggesting that the downward pressure on the stock may continue.
Elastic N.V. (ESTC) has faced a more pronounced decline, with a price change of -32.56% over the past year, also indicating a bearish trend. This stock has exhibited higher volatility, reflected in a standard deviation of 14.91. The highest price reached was 130.39, compared to a low of 70.04. In recent weeks, from September 14, 2025, to November 30, 2025, the stock has decreased by 19.81%, with a trend slope of -1.02. This indicates a deceleration in the rate of decline, but the overall bearish trend suggests ongoing challenges for the stock.
Analyst Opinions
Recent analyst recommendations for Informatica Inc. (INFA) have not yet been published, leaving a gap in consensus. Conversely, Elastic N.V. (ESTC) has received a C- rating from analysts, indicating a hold sentiment. Analysts argue that ESTC’s current valuation does not justify a buy, citing concerns over its financial metrics such as return on equity and debt levels. Overall, the consensus for 2025 leans toward a cautious hold for ESTC, while INFA awaits clearer guidance from analysts.
Stock Grades
In this section, we will review the latest stock ratings for Informatica Inc. (INFA) and Elastic N.V. (ESTC) based on reliable grading data from recognized firms.
Informatica Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Guggenheim | downgrade | Neutral | 2025-08-07 |
| UBS | maintain | Neutral | 2025-08-07 |
| Baird | maintain | Neutral | 2025-05-28 |
| JP Morgan | downgrade | Neutral | 2025-05-28 |
| RBC Capital | maintain | Sector Perform | 2025-05-28 |
| Wolfe Research | downgrade | Peer Perform | 2025-05-28 |
| Wells Fargo | maintain | Equal Weight | 2025-05-28 |
| Truist Securities | downgrade | Hold | 2025-05-28 |
| RBC Capital | maintain | Sector Perform | 2025-05-27 |
| UBS | maintain | Neutral | 2025-05-16 |
Elastic N.V. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-11-24 |
| JP Morgan | maintain | Overweight | 2025-11-21 |
| Piper Sandler | maintain | Overweight | 2025-11-21 |
| Cantor Fitzgerald | maintain | Neutral | 2025-11-21 |
| Wells Fargo | maintain | Equal Weight | 2025-11-21 |
| DA Davidson | maintain | Neutral | 2025-11-21 |
| Stifel | maintain | Buy | 2025-11-21 |
| Morgan Stanley | maintain | Overweight | 2025-11-21 |
| Truist Securities | maintain | Buy | 2025-11-21 |
| Guggenheim | maintain | Buy | 2025-11-21 |
Overall, the trend for INFA shows a shift towards more conservative ratings, with multiple downgrades to Neutral status. On the other hand, ESTC maintains a favorable outlook, with consistent “Buy” and “Overweight” ratings from reputable firms, indicating sustained investor confidence.
Target Prices
The consensus target prices for Informatica Inc. (INFA) and Elastic N.V. (ESTC) indicate a positive outlook from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Informatica Inc. | 27 | 25 | 26 |
| Elastic N.V. | 134 | 76 | 108 |
Informatica Inc. has a target consensus of 26, slightly above its current price of 24.79, while Elastic N.V. shows a more substantial potential with a consensus of 108 compared to its current price of 70.14. This suggests that both stocks have room for growth according to analyst expectations.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Informatica Inc. (INFA) and Elastic N.V. (ESTC) based on recent data.
| Criterion | Informatica Inc. (INFA) | Elastic N.V. (ESTC) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Low (Net Margin: 0.61%) | Low (Net Margin: -7.29%) |
| Innovation | Strong | Strong |
| Global presence | Moderate | Strong |
| Market Share | Small | Moderate |
| Debt level | Moderate (Debt/Equity: 0.81) | Low (Debt/Equity: 0.64) |
Key takeaways indicate that while both companies exhibit strong innovation capabilities, Informatica shows a moderate level of diversification and a weak profitability margin. Elastic, on the other hand, has significant global presence but struggles with profitability as well.
Risk Analysis
The following table summarizes the key risks associated with Informatica Inc. (INFA) and Elastic N.V. (ESTC):
| Metric | Informatica Inc. | Elastic N.V. |
|---|---|---|
| Market Risk | Medium | High |
| Regulatory Risk | High | Medium |
| Operational Risk | Medium | High |
| Environmental Risk | Low | Medium |
| Geopolitical Risk | Low | Medium |
Both companies face significant risks, particularly regarding market volatility and operational challenges. Elastic N.V. has a higher market risk due to fluctuating demand in the tech sector, while Informatica Inc. must navigate complex regulatory landscapes impacting its operations.
Which one to choose?
In evaluating Informatica Inc. (INFA) and Elastic N.V. (ESTC), both companies face significant challenges. INFA has a market cap of approximately $7.83B, exhibiting a gross profit margin of 80.1% but a concerning net profit margin of just 0.6%. Meanwhile, ESTC has a market cap of about $8.94B, with a gross margin of 74.4% and a net loss margin of 7.2%.
From a valuation standpoint, INFA’s P/E ratio is extraordinarily high at nearly 788, indicating market skepticism about its profitability. ESTC, rated C- by analysts, reflects a bearish trend with a price drop of 32.6% over the past year.
Investors seeking growth might favor INFA given its higher profitability margins, while those focused on value might find ESTC’s lower valuation appealing despite its risks. Both companies face risks related to market competition and the sustainability of their revenue streams.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Informatica Inc. and Elastic N.V. to enhance your investment decisions:
