Financial Review: Cornerstone OnDemand (CSOD) vs. Demandware (DWRE)
Cornerstone OnDemand (NASDAQ: CSOD) and Demandware (NYSE:DWRE) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Valuation & Earnings
This table compares Cornerstone OnDemand and Demandware’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cornerstone OnDemand||$445.02 million||4.40||-$45.49 million||($1.21)||-28.12|
Demandware has higher revenue, but lower earnings than Cornerstone OnDemand. Demandware is trading at a lower price-to-earnings ratio than Cornerstone OnDemand, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Cornerstone OnDemand and Demandware, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cornerstone OnDemand currently has a consensus target price of $44.33, suggesting a potential upside of 30.28%. Given Cornerstone OnDemand’s higher probable upside, analysts clearly believe Cornerstone OnDemand is more favorable than Demandware.
Volatility and Risk
Cornerstone OnDemand has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Demandware has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
This table compares Cornerstone OnDemand and Demandware’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
89.6% of Cornerstone OnDemand shares are held by institutional investors. 12.6% of Cornerstone OnDemand shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Cornerstone OnDemand beats Demandware on 8 of the 11 factors compared between the two stocks.
Cornerstone OnDemand Company Profile
Cornerstone OnDemand, Inc. is a cloud computing company. The Company provides learning and human capital management software, delivered as Software-as-a-Service (SaaS). Its human capital management platform combines the talent management solutions with analytics and human resources (HR) administration solutions to enable organizations to manage the employee lifecycle. Its enterprise human capital management platform consists of four product suites: its Recruiting suite, which helps organizations to source and attract candidates, assess and select applicants, onboard new hires and manage the entire recruiting process; its Learning suite, which enables clients to manage training and development programs; its Performance suite, which provides tools to manage goal setting, performance reviews, compensation management and succession planning, and HR Administration suite, which supports employee records administration, workforce planning and compliance reporting.
Demandware Company Profile
Demandware, Inc. is a provider of enterprise-class cloud commerce solutions for retailers and branded manufacturers, including solutions for digital commerce and point of sale, as well as order management and intelligence capabilities. The Company’s Demandware Commerce offering is a combination of its cloud platform, community and related services that enables customers to establish and execute complex digital commerce solutions. Demandware Commerce facilitates omni-channel processes, multi-brand and multi-site rollouts, predictive merchandising and in-store operations. Its technology platform is the Demandware Commerce Cloud. The Demandware Commerce Cloud consists of over two primary solutions, such as Demandware Digital and Demandware Store. It also offers Demandware LINK, which includes technology, solution and an end-to end partners. LINK Technology Partners provide customers with access to technologies that complement the Demandware Commerce Cloud through pre-built integrations.
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