support.com (NASDAQ: SPRT) and Demandware (NYSE:DWRE) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

35.2% of support.com shares are held by institutional investors. 15.5% of support.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares support.com and Demandware’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
support.com -11.99% -9.82% -8.51%
Demandware -17.65% -16.30% -12.67%

Analyst Ratings

This is a breakdown of recent ratings for support.com and Demandware, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
support.com 0 0 0 0 N/A
Demandware 0 0 0 0 N/A

Valuation and Earnings

This table compares support.com and Demandware’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
support.com $58.93 million 0.76 -$5.35 million ($0.39) -6.10
Demandware N/A N/A N/A ($1.20) -62.47

Demandware has higher revenue, but lower earnings than support.com. Demandware is trading at a lower price-to-earnings ratio than support.com, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

support.com has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Demandware has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Summary

support.com beats Demandware on 7 of the 8 factors compared between the two stocks.

support.com Company Profile

Support.com, Inc. is a provider of cloud-based software and services for technology support. The Company offers outsourced support services for service providers, retailers, Internet of Things (IoT) solution providers and technology companies. It offers technology support services programs for both the consumer and small business markets, and includes computer and mobile device set-up, security and support, virus and malware removal, wireless network set-up, and home security and automation system support. Its cloud-based offering, Nexus, is a software-as-a-service solution for companies to support interactions with their customers. Its end user software products are designed to maintain, optimize and secure computers and mobile devices. Its principal software products include products designed for malware protection and removal (SUPERAntiSpyware); personal computer (PC), smartphone and tablet maintenance and optimization (Cosmos), and PC registry cleaning and repair (ARO).

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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