Tech stocks have taken a hit recently, as fears about inflation have weighed on Wall Street. Notably, shares of Coupa Software (COUP) and Okta (OKTA 1.14%) have fallen over 20% from their 52-week highs, and both have underperformed the S&P 500 over the last year.

Even so, analysts at KeyBanc have a $400 price target on Coupa and $316 target on Okta, representing 72% and 37% upside, respectively. While it's not smart to rely solely on price targets, they can be a good place to start your research. So let's look more closely at these tech stocks.

Coupa Software

Coupa's business spend management platform helps enterprises control, track, and analyze corporate expenses. This streamlines inventory sourcing and boosts efficiency, which enables clients to operate more profitably. Recently, Fast Company recognized Coupa as one of the most innovative businesses in the world.

Woman contemplating data, presented as text, pie charts, and bar graphs.

Image source: Getty Images.

Coupa's business model benefits from several network effects. For instance, it collects spend data from across its platform, then uses that data to surface AI-powered suggestions. As more customers join the platform, the quality of these prescriptive insights improves, benefiting all clients.

Likewise, as Coupa's customer base scales, its collective buying power expands. The company uses that advantage to orchestrate group sourcing events, allowing clients to pool resources and earn volume-based discounts in a way that would be impossible on their own.

Citing these advantages, the International Data Corp. (IDC) recently named Coupa a leader in six different markets, ranging from procurement and spend analysis to sourcing and supplier relationship management. That's a strong endorsement.

Not surprisingly, Coupa has consistently delivered stellar financial results.

Metric

2018

2021

CAGR

Customers

700

2,000

42%

Revenue

$186.8 million

$541.6 million

43%

Data source: Coupa SEC filings. Note: Fiscal 2021 ended Jan. 31, 2021. CAGR = compound annual growth rate.

Going forward, Coupa should continue to gain traction with enterprises as they look to reduce supply chain risk and operate more efficiently. To that end, management puts the company's market opportunity at $56 billion -- more than 100 times trailing-12-month revenue. That's why investors should consider adding this tech stock to their portfolio.

Okta

Okta provides identity and access management solutions. The Okta Identity Cloud enables IT admins to ensure the right people have access to the right applications and resources, whether they are in the office or working remotely. Notably, Okta's cloud-based platform addresses both workforce and customer identity, providing a secure sign-on experience in both cases.

Computer chip embossed with fingerprint.

Image source: Getty Images.

In workforce identity, Okta has achieved a greater market presence than any of its competitors, including Microsoft. To add, Okta recently completed its acquisition of Auth0 in a stock transaction valued at $6.5 billion. This expands its toolkit for developers, which should help the company gain share in the customer identity market.

Overall, Okta's financial performance has been strong in recent years.

Metric

2018

2021

CAGR

Customers

4,350

10,000

32%

Revenue

$260.0 million

$835.4 million

48%

Data source: Okta SEC filings. Note: Fiscal 2021 ended Jan. 31, 2021. CAGR = compound annual growth rate.

Investors should note that Okta's net retention rate was 121% in 2021, indicating a 21% uptick in average customer spend. That type of retention should keep the company ahead of its rivals.

As a final thought, Okta recently launched two new products. First, Okta Identity Governance is an identity governance and administration solution, which goes beyond identity and access management to support compliance requirements and automate identity workflows. Second, Okta Privileged Access is a privileged access management solution, which focuses on protecting high-profile user accounts.

Notably, Okta's two primary competitors -- Microsoft and Ping Identity -- don't offer a comprehensive solution for these various products. This gives Okta a big advantage. It also expands the company's market opportunity to $80 billion, leaving Okta well positioned to grow its business.

For what it's worth, I'm an Okta shareholder, and since its trading at a 20% discount to its 52-week high, I think now is a good time to buy this stock.