Comparing ChannelAdvisor (ECOM) and Workiva (WK)

ChannelAdvisor (NYSE: ECOM) and Workiva (NYSE:WK) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

81.7% of ChannelAdvisor shares are held by institutional investors. Comparatively, 35.2% of Workiva shares are held by institutional investors. 11.3% of ChannelAdvisor shares are held by insiders. Comparatively, 33.3% of Workiva shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares ChannelAdvisor and Workiva’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ChannelAdvisor $113.20 million 2.18 -$8.00 million ($0.40) -23.25
Workiva $178.65 million 5.07 -$43.97 million ($0.91) -23.74

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

Volatility & Risk

ChannelAdvisor has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Workiva has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ChannelAdvisor and Workiva, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ChannelAdvisor 0 4 3 0 2.43
Workiva 0 3 3 0 2.50

ChannelAdvisor presently has a consensus target price of $14.13, indicating a potential upside of 51.88%. Workiva has a consensus target price of $21.83, indicating a potential upside of 1.08%. Given ChannelAdvisor’s higher possible upside, analysts plainly believe ChannelAdvisor is more favorable than Workiva.

Profitability

This table compares ChannelAdvisor and Workiva’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ChannelAdvisor -8.54% -9.48% -5.75%
Workiva -18.83% -13,251.94% -25.39%

Summary

ChannelAdvisor beats Workiva on 7 of the 12 factors compared between the two stocks.

ChannelAdvisor 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.

Workiva Company Profile

Workiva Inc. provides enterprises with cloud solutions for improving productivity, accountability and insight into business data. The Company created Wdesk, a collaborative work management platform for organizations to collect, link, report and analyze their business data. Wdesk’s word processing, spreadsheet and presentation applications are integrated and built upon a data management engine, offering synchronized data, controlled collaboration, granular permissions and a full audit trail. As of December 31, 2016, it provided its platform to over 2,700 organizations. Wdesk enables coworkers to create, review and publish data-linked documents and reports with control, accuracy and productivity. With Wdesk data linking, changes are automatically updated in all linked instances, including numbers, text, charts and graphics throughout a customer’s spreadsheets, word-processing documents and presentation decks in the Wdesk platform.

Receive News & Ratings for ChannelAdvisor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ChannelAdvisor and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply