In the dynamic world of technology, Snowflake Inc. and Perfect Corp. stand out as innovative players reshaping their respective markets. Snowflake leads in cloud-based data platforms, enabling businesses to harness data for smarter decisions. Perfect Corp. pioneers AI and augmented reality in beauty and fashion tech, transforming customer engagement. This article will analyze both companies to determine which offers a more compelling opportunity for investors seeking growth and innovation.
Table of contents
Companies Overview
I will begin the comparison between Snowflake Inc. and Perfect Corp. by providing an overview of these two companies and their main differences.
Snowflake Inc. Overview
Snowflake Inc. operates a cloud-based data platform primarily in the United States and internationally. Its Data Cloud platform consolidates data into a single source of truth, enabling businesses to derive insights, build data-driven applications, and share data. Founded in 2012 and based in Bozeman, Montana, Snowflake serves organizations across various industries with a workforce of 7,834 employees.
Perfect Corp. Overview
Perfect Corp. offers SaaS solutions combining artificial intelligence and augmented reality for beauty and fashion tech. Its services include virtual try-on features for makeup, hair color, accessories, and more, alongside several related apps. Established in 2015 and headquartered in New Taipei City, Taiwan, Perfect Corp. employs 342 people and targets a niche market within the technology sector.
Key similarities and differences
Both Snowflake and Perfect Corp. operate in the technology sector with a focus on software applications, but Snowflake specializes in cloud data platforms, while Perfect Corp. concentrates on AI and AR solutions for beauty and fashion. Snowflake commands a significantly larger market cap and workforce, reflecting its broader enterprise scope. In contrast, Perfect Corp.’s offerings are consumer-oriented, highlighting distinct business models within the tech industry.
Income Statement Comparison
The table below compares the most recent full fiscal year income statement metrics for Snowflake Inc. and Perfect Corp., highlighting their financial scale and profitability measures.
| Metric | Snowflake Inc. (SNOW) | Perfect Corp. (PERF) |
|---|---|---|
| Market Cap | 70.4B | 179M |
| Revenue | 3.63B | 60.2M |
| EBITDA | -1.10B | -2.05M |
| EBIT | -1.28B | -2.84M |
| Net Income | -1.29B | 5.02M |
| EPS | -3.86 | 0.05 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Snowflake Inc.
Snowflake Inc. displayed strong revenue growth from 2021 to 2025, surging over 500% to reach $3.63B in 2025. However, net income remained negative throughout, worsening to -$1.29B in 2025 despite a favorable gross margin of 66.5%. The latest year showed a revenue growth of 29.21%, but net margin and EPS declined, reflecting ongoing profitability challenges.
Perfect Corp.
Perfect Corp. experienced steady revenue growth, doubling from $29.9M in 2020 to $60.2M in 2024. Net income turned positive in recent years, reaching $5.0M in 2024, supported by a strong gross margin near 78%. Despite an unfavorable EBIT margin, the company’s net margin improved to 8.34%, with EPS growth of 8.93% in the latest year, indicating improving profitability trends.
Which one has the stronger fundamentals?
Perfect Corp. shows stronger fundamentals with consistent revenue growth, positive net income, and improving margins over the period. Snowflake’s substantial revenue expansion contrasts with persistent losses and negative net margin, signaling higher risk. While Snowflake’s gross margin is solid, its ongoing net losses and deteriorating EPS temper its overall fundamental strength compared to Perfect Corp.
Financial Ratios Comparison
The following table presents a side-by-side comparison of key financial ratios for Snowflake Inc. (SNOW) and Perfect Corp. (PERF) based on the most recent fiscal year data available, 2025 for SNOW and 2024 for PERF.
| Ratios | Snowflake Inc. (SNOW) FY 2025 | Perfect Corp. (PERF) FY 2024 |
|---|---|---|
| ROE | -42.9% | 3.42% |
| ROIC | -25.2% | -2.10% |
| P/E | -47.0 | 56.6 |
| P/B | 20.13 | 1.93 |
| Current Ratio | 1.75 | 5.52 |
| Quick Ratio | 1.75 | 5.52 |
| D/E (Debt to Equity) | 0.90 | 0.0035 |
| Debt-to-Assets | 29.7% | 0.28% |
| Interest Coverage | -528 | -449 |
| Asset Turnover | 0.40 | 0.33 |
| Fixed Asset Turnover | 5.53 | 57.94 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
Snowflake Inc.
Snowflake shows a mixed financial profile with several unfavorable ratios, including negative net margin (-35.45%), return on equity (-42.86%), and return on invested capital (-25.24%). However, liquidity ratios like current and quick ratio at 1.75 are favorable, indicating adequate short-term financial health. The company does not pay dividends, reflecting a focus on reinvestment and growth rather than shareholder payouts.
Perfect Corp.
Perfect Corp. displays a somewhat balanced ratio set, with a positive net margin (8.34%) but unfavorable return on equity (3.42%) and return on invested capital (-2.10%). Its current ratio is high at 5.52 but considered unfavorable, possibly indicating excess liquidity. Like Snowflake, Perfect Corp. pays no dividends, likely prioritizing reinvestment and expansion over immediate shareholder returns.
Which one has the best ratios?
Both companies have 35.71% favorable and 50% unfavorable ratios, leading to a slightly unfavorable overall evaluation. Snowflake benefits from stronger liquidity and asset turnover, while Perfect Corp. has a better net margin and cost of capital. Neither company pays dividends, reflecting similar growth or reinvestment strategies. The choice depends on specific investor priorities.
Strategic Positioning
This section compares the strategic positioning of Snowflake Inc. and Perfect Corp., including their market position, key segments, and exposure to technological disruption:
Snowflake Inc.
- Leading cloud-based data platform with strong market presence and moderate competitive pressure.
- Focused on cloud data platform products driving most revenue; professional services are a minor segment.
- Positioned in cloud software sector, with inherent exposure to evolving cloud and data technologies.
Perfect Corp.
- Smaller market cap with niche positioning in AI and AR beauty tech, facing lower competitive pressure.
- Concentrated on AI and AR SaaS solutions for beauty and fashion tech, with diverse virtual try-on applications.
- High exposure to technological disruption through AI and AR innovation in beauty and fashion sectors.
Snowflake Inc. vs Perfect Corp. Positioning
Snowflake’s approach centers on a diversified cloud data platform with broad industry applications, while Perfect Corp. concentrates on specialized AI and AR solutions in beauty tech. Snowflake benefits from scale, whereas Perfect leverages innovation in niche markets.
Which has the best competitive advantage?
Both companies are currently shedding value with ROIC below WACC; however, Perfect shows improving profitability trends, suggesting a slightly more favorable competitive advantage despite ongoing challenges.
Stock Comparison
The past year reveals distinct bearish trends for Snowflake Inc. and Perfect Corp., with Snowflake showing a milder decline and higher volatility compared to Perfect’s more pronounced and stable downward movement.
Trend Analysis
Snowflake Inc. (SNOW) experienced a bearish trend over the past 12 months with a price decline of 8.27%, accompanied by a deceleration in trend and high volatility (std deviation 42.6). The stock ranged from a low of 108.56 to a high of 274.88.
Perfect Corp. (PERF) also showed a bearish trend with a steeper 28.98% price drop over the same period. The trend decelerated with low volatility (std deviation 0.27), hitting a high of 2.7 and a low of 1.61.
Comparing the two, Snowflake delivered the highest market performance despite both showing bearish trends; its smaller percentage loss indicates a relatively better resilience than Perfect Corp.
Target Prices
The current analyst consensus presents promising upside potential for Snowflake Inc., while Perfect Corp. shows a stable target.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Snowflake Inc. | 325 | 237 | 281.86 |
| Perfect Corp. | 7 | 7 | 7 |
Analysts expect Snowflake’s stock to trade significantly above its current price of 210.38 USD, indicating growth potential. Perfect Corp.’s target consensus at 7 USD far exceeds its current price of 1.74 USD, suggesting a bullish outlook despite its smaller market size.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Snowflake Inc. and Perfect Corp.:
Rating Comparison
SNOW Rating
- Rating: C- reflecting a very favorable status overall.
- Discounted Cash Flow Score: Moderate score of 3, indicating balanced valuation.
- ROE Score: Very unfavorable with a low score of 1, indicating weak profit generation from equity.
- ROA Score: Very unfavorable 1, suggesting poor asset utilization.
- Debt To Equity Score: Very unfavorable 1, signaling high financial risk.
- Overall Score: Very unfavorable 1, highlighting weak financial standing.
PERF Rating
- Rating: A- with a very favorable status overall.
- Discounted Cash Flow Score: Very favorable 5, showing strong future cash flow.
- ROE Score: Moderate score of 2, showing moderate efficiency in equity profit.
- ROA Score: Moderate 3, indicating relatively better asset use.
- Debt To Equity Score: Favorable 4, reflecting a stronger balance sheet.
- Overall Score: Favorable 4, indicating solid financial health.
Which one is the best rated?
Based strictly on the data, Perfect Corp. is better rated than Snowflake Inc. across all key financial metrics, showing stronger valuation, profitability, asset utilization, and financial stability scores.
Scores Comparison
Here is the comparison of the Altman Z-Score and Piotroski Score for Snowflake Inc. and Perfect Corp.:
Snowflake Inc. Scores
- Altman Z-Score: 5.36, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 4, classified as average financial strength.
Perfect Corp. Scores
- Altman Z-Score: 1.31, indicating distress zone with high bankruptcy risk.
- Piotroski Score: 6, also classified as average financial strength.
Which company has the best scores?
Snowflake Inc. shows a significantly stronger Altman Z-Score, placing it in the safe zone, unlike Perfect Corp. Perfect Corp. has a higher Piotroski Score, but both companies’ scores are within the average range.
Grades Comparison
The following is a comparison of the recent grades and ratings assigned to Snowflake Inc. and Perfect Corp.:
Snowflake Inc. Grades
This table summarizes recent grades issued by reputable financial institutions for Snowflake Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Downgrade | Equal Weight | 2026-01-12 |
| Argus Research | Upgrade | Buy | 2026-01-08 |
| Citigroup | Maintain | Buy | 2025-12-08 |
| Wells Fargo | Maintain | Overweight | 2025-12-04 |
| Keybanc | Maintain | Overweight | 2025-12-04 |
| Piper Sandler | Maintain | Overweight | 2025-12-04 |
| Morgan Stanley | Maintain | Overweight | 2025-12-04 |
| Wedbush | Maintain | Outperform | 2025-12-04 |
| Deutsche Bank | Maintain | Buy | 2025-12-04 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-12-04 |
Overall, Snowflake Inc. maintains predominantly positive grades, with a majority of buy, overweight, and outperform ratings, despite a recent downgrade from Barclays.
Perfect Corp. Grades
This table presents recent grades from financial institutions for Perfect Corp.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2024-02-29 |
| Goldman Sachs | Maintain | Neutral | 2023-10-26 |
| Piper Sandler | Maintain | Neutral | 2023-10-25 |
| Piper Sandler | Maintain | Neutral | 2023-07-26 |
| Piper Sandler | Maintain | Neutral | 2023-07-25 |
| Piper Sandler | Maintain | Neutral | 2023-04-27 |
| Oppenheimer | Downgrade | Perform | 2023-04-20 |
| Oppenheimer | Downgrade | Perform | 2023-04-19 |
| Oppenheimer | Downgrade | Perform | 2023-04-18 |
| Piper Sandler | Maintain | Neutral | 2023-03-08 |
Perfect Corp. shows consistent neutral ratings, with some downgrades from outperform to perform by Oppenheimer, indicating a cautious outlook.
Which company has the best grades?
Snowflake Inc. has received significantly more favorable grades, with numerous buy and overweight ratings compared to Perfect Corp.’s mostly neutral and downgraded assessments. This suggests stronger analyst confidence in Snowflake’s prospects, potentially impacting investor sentiment positively.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Snowflake Inc. and Perfect Corp. based on the latest financial and operational data.
| Criterion | Snowflake Inc. (SNOW) | Perfect Corp. (PERF) |
|---|---|---|
| Diversification | Moderate product segmentation with growing product revenue (3.46B in 2025) and smaller services segment | Limited data on diversification; likely focused on core business areas |
| Profitability | Negative net margin (-35.45%) and declining ROIC, value shedding company | Slightly positive net margin (8.34%), growing ROIC trend, but still shedding value |
| Innovation | High product revenue growth indicates strong innovation but profitability issues | Improving profitability signals innovation potential, yet overall returns remain low |
| Global presence | Significant global reach reflected in revenues and asset turnover | Smaller scale with lower asset turnover but favorable debt metrics |
| Market Share | Large product revenue suggests strong market presence | Market share data limited, but financial ratios indicate a growing but challenged position |
Key takeaways: Snowflake shows impressive top-line growth and innovation but struggles with profitability and value creation. Perfect Corp. demonstrates improving profitability trends and strong balance sheet metrics, though it still faces challenges in generating positive returns on capital. Both require cautious risk management for investors.
Risk Analysis
Below is a comparative table of key risks affecting Snowflake Inc. (SNOW) and Perfect Corp. (PERF) as of the most recent fiscal years:
| Metric | Snowflake Inc. (SNOW) | Perfect Corp. (PERF) |
|---|---|---|
| Market Risk | Moderate (Beta 1.14, tech sector volatility) | Low (Beta 0.45, smaller market cap) |
| Debt level | Moderate (Debt-to-Equity 0.9, manageable) | Low (Debt-to-Equity 0.0, very low leverage) |
| Regulatory Risk | Moderate (US-based, data privacy regulations) | Moderate (Taiwan-based, geopolitical tensions) |
| Operational Risk | Moderate (Cloud platform dependency, growth challenges) | Moderate (AI/AR tech innovation risks, smaller scale) |
| Environmental Risk | Low (Software industry, limited direct impact) | Low (Software industry, limited direct impact) |
| Geopolitical Risk | Low (US headquarters, global customers) | High (Taiwan HQ, China cross-strait tensions) |
The most impactful risks are geopolitical for Perfect Corp. due to Taiwan’s geopolitical environment and operational risks for Snowflake linked to rapid growth and competitive pressures. Snowflake’s moderate debt is manageable but warrants monitoring, while Perfect’s low debt reduces financial risk. Both face typical regulatory scrutiny in their tech domains.
Which Stock to Choose?
Snowflake Inc. (SNOW) shows strong revenue growth of 29.21% last year and 512.52% over five years, but suffers from significant net losses and negative profitability ratios, including a -42.86% ROE and -25.24% ROIC. Its debt level is moderate with a debt-to-equity ratio of 0.9, but the company is rated very favorably overall despite slightly unfavorable financial ratios and a very unfavorable moat due to declining profitability.
Perfect Corp. (PERF) posts modest revenue growth of 12.52% last year and doubled revenue over five years, with a positive net margin of 8.34% and moderate ROE of 3.42%. It maintains very low debt with a debt-to-equity ratio near zero and holds a very favorable rating, supported by a slightly unfavorable moat that shows improving profitability. Financial ratios are slightly unfavorable overall but with strong liquidity and asset turnover.
For investors prioritizing growth potential, Snowflake’s rapid revenue expansion and favorable rating might appear attractive despite profitability challenges and value destruction signals. Conversely, those focused on financial stability and improving profitability could find Perfect’s more moderate growth, low debt, and improving financial health more appealing. Ultimately, the choice might depend on risk tolerance and investment strategy preferences.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Snowflake Inc. and Perfect Corp. to enhance your investment decisions:
