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.
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.
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 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.
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 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.
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