Gridsum (NASDAQ: GSUM) and Callidus Software (NASDAQ:CALD) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Gridsum and Callidus Software’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gridsum $57.65 million 5.15 -$9.74 million ($1.27) -9.28
Callidus Software $206.72 million 9.97 -$18.96 million ($0.35) -86.43

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

Profitability

This table compares Gridsum and Callidus Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gridsum -27.91% -19.63% -11.15%
Callidus Software -9.54% -5.67% -3.39%

Institutional & Insider Ownership

35.7% of Gridsum shares are held by institutional investors. Comparatively, 92.1% of Callidus Software shares are held by institutional investors. 1.6% of Callidus Software shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Gridsum and Callidus Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gridsum 0 0 0 0 N/A
Callidus Software 0 1 9 0 2.90

Callidus Software has a consensus price target of $30.11, indicating a potential downside of 0.46%. Given Callidus Software’s higher probable upside, analysts plainly believe Callidus Software is more favorable than Gridsum.

Summary

Callidus Software beats Gridsum on 10 of the 12 factors compared between the two stocks.

About Gridsum

Gridsum Holding Inc. is a holding company. The Company provides data analysis software for multinational and domestic enterprises, and government agencies in China. The Company’s technology, the Gridsum Big Data Platform performs multi-dimensional correlation analysis and analyzes real-time events. The Company offers various types of solutions and technologies. The Company’s software products are designed for a range of commercial and governmental applications. The Company’s products focus on digital marketing analytics and automation solutions. The Company offers Web analytics solutions based on data warehouse technology to build solutions on a distributed data warehouse architecture, using the open-source Hadoop framework. The Company delivers its solutions as cloud-based software-as-a-service (SaaS) offerings that manage information technology (IT) support costs by outsourcing hardware and software maintenance and support.

About Callidus Software

Callidus Software Inc. (Callidus) is a provider of cloud-based sales, marketing, learning and customer experience solutions. The Company’s CallidusCloud enables its customers to manage their Lead to Money process with a suite of solutions that identify leads, implement territory and quota plans, enable sales forces, automate bid configuration pricing and quoting, manage contracts, streamline sales compensation and capture customer feedback, among others. Lead to Money is a process designed to help companies respond to the changing role of sales and marketing in the redefined buying cycle. The company’s Lead to Money suite and technology solutions include Lead, Planning, Enablement, Quotes and Proposals, Contracts, Incentives, Customer Experience and Technology. The Company provides a range of services to its customers, which include professional services, business process outsourcing services, maintenance and technical support services, and education services.

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