Critical Review: ChannelAdvisor Corporation (ECOM) vs. NetSuite (N)
ChannelAdvisor Corporation (NYSE: ECOM) and NetSuite (NYSE:N) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.
Insider & Institutional Ownership
81.5% of ChannelAdvisor Corporation shares are held by institutional investors. Comparatively, 54.5% of NetSuite shares are held by institutional investors. 11.3% of ChannelAdvisor Corporation shares are held by company insiders. Comparatively, 4.6% of NetSuite shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares ChannelAdvisor Corporation and NetSuite’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ChannelAdvisor Corporation||$118.09 million||2.46||-$4.61 million||($0.35)||-31.43|
NetSuite has higher revenue, but lower earnings than ChannelAdvisor Corporation. NetSuite is trading at a lower price-to-earnings ratio than ChannelAdvisor Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ChannelAdvisor Corporation has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, NetSuite has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.
This table compares ChannelAdvisor Corporation and NetSuite’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for ChannelAdvisor Corporation and NetSuite, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ChannelAdvisor Corporation currently has a consensus price target of $14.50, indicating a potential upside of 31.82%. NetSuite has a consensus price target of $94.33, indicating a potential upside of 4.42%. Given ChannelAdvisor Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe ChannelAdvisor Corporation is more favorable than NetSuite.
ChannelAdvisor Corporation beats NetSuite on 10 of the 11 factors compared between the two stocks.
ChannelAdvisor Corporation Company Profile
Channeladvisor Corporation is a provider of Software as a service (SaaS) solutions. The Company’s SaaS solutions enable retailer and branded manufacturer customers to integrate, manage and optimize their merchandise sales via hundreds of online channels. The Company’s platform enable its customers to connect with new and existing sources of demand for their products, including e-commerce marketplaces, such as Amazon, eBay, Jet.com, Newegg, Sears and Walmart, search engines and comparison shopping Websites, such as Google, Microsoft’s Bing and Nextag, and social channels, such as Facebook, Instagram and Pinterest. Its suite of solutions provides customers with a single, integrated user interface to manage their product listings, inventory availability, pricing optimization, search terms, data analytics and other functions. It also offers solutions that allow manufacturers to send their Web visitors or digital marketing audiences directly to authorized resellers.
NetSuite Company Profile
NetSuite Inc. (NetSuite) is a provider of cloud-based financials, enterprise resource planning and omnichannel commerce software suites. The Company offers a suite of applications, including financial management, customer relationship management, e-commerce and retail management, commerce marketing automation, professional services automation and human capital management that enable companies to manage business operations in an integrated suite. The Company also offers customer support and professional services related to the support and implementation of its suite of applications. The Company delivers its applications over the Internet as a subscription service using the software-as-a-service model. The Company’s offerings include NetSuite, NetSuite OneWorld, NetSuite CRM+, NetSuite OpenAir PSA, SuiteCommerce, Bronto Marketing Platform, NetSuite InStore POS, LightCMS, Add-On Modules, NetSuite Industry Editions and SuiteCloud Platform.
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