Critical Analysis: Qualys (QLYS) & Cornerstone OnDemand (CSOD)
Qualys (NASDAQ: QLYS) and Cornerstone OnDemand (NASDAQ:CSOD) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
This table compares Qualys and Cornerstone OnDemand’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
73.8% of Qualys shares are owned by institutional investors. Comparatively, 91.8% of Cornerstone OnDemand shares are owned by institutional investors. 30.2% of Qualys shares are owned by company insiders. Comparatively, 12.6% of Cornerstone OnDemand shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current recommendations for Qualys and Cornerstone OnDemand, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Qualys currently has a consensus target price of $45.09, suggesting a potential downside of 6.55%. Cornerstone OnDemand has a consensus target price of $44.33, suggesting a potential upside of 23.63%. Given Cornerstone OnDemand’s higher possible upside, analysts plainly believe Cornerstone OnDemand is more favorable than Qualys.
Risk and Volatility
Qualys has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Cornerstone OnDemand has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Valuation & Earnings
This table compares Qualys and Cornerstone OnDemand’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Qualys||$211.63 million||8.55||$52.41 million||$1.02||47.30|
|Cornerstone OnDemand||$445.02 million||4.64||-$45.49 million||($1.21)||-29.64|
Qualys has higher revenue, but lower earnings than Cornerstone OnDemand. Cornerstone OnDemand is trading at a lower price-to-earnings ratio than Qualys, indicating that it is currently the more affordable of the two stocks.
Qualys beats Cornerstone OnDemand on 10 of the 14 factors compared between the two stocks.
Qualys Company Profile
Qualys, Inc. is a provider of cloud-based security and compliance solutions. The Company’s solutions enable organizations to identify security risks to their information technology (IT) infrastructures, help protect their IT systems and applications from cyber-attacks. Its suite of security and compliance solutions delivered on its Qualys Cloud Platform enables its customers to identify their IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions and verify the implementation of such actions. Its Qualys Cloud Platform consists of a suite of IT security and compliance solutions. The Qualys Cloud Suite includes solutions, such as Vulnerability Management, Continuous Monitoring, Cloud Agent, AssetView, ThreatPROTECT, Policy Compliance, Payment Card Industry Compliance, Security Assessment Questionnaire, Web Application Scanning and Web Application Firewall. It provides its solutions through a software-as-a-service model.
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.
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