EXA (NASDAQ: EXA) and Callidus Software (NASDAQ:CALD) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for EXA and Callidus Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXA 0 4 0 0 2.00
Callidus Software 0 1 9 0 2.90

EXA presently has a consensus target price of $20.63, indicating a potential downside of 14.91%. Callidus Software has a consensus target price of $30.11, indicating a potential downside of 0.46%. Given Callidus Software’s stronger consensus rating and higher probable upside, analysts plainly believe Callidus Software is more favorable than EXA.

Profitability

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

Net Margins Return on Equity Return on Assets
EXA -15.10% -62.82% -18.57%
Callidus Software -9.54% -5.67% -3.39%

Insider and Institutional Ownership

74.4% of EXA shares are held by institutional investors. Comparatively, 92.1% of Callidus Software shares are held by institutional investors. 11.5% of EXA shares are held by company insiders. Comparatively, 1.6% of Callidus Software shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares EXA and Callidus Software’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EXA $72.58 million 5.04 -$1.13 million ($0.31) -78.19
Callidus Software $206.72 million 9.97 -$18.96 million ($0.36) -84.03

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

Volatility and Risk

EXA has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Callidus Software has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Summary

Callidus Software beats EXA on 10 of the 14 factors compared between the two stocks.

About EXA

Exa Corporation develops, sells and supports simulation software and services that manufacturers use in design and engineering processes. The Company focuses primarily on the ground transportation market, including manufacturers in the passenger vehicle, highway truck, off-highway vehicle and train markets, as well as their suppliers. Its product, PowerFLOW, is a software solution for simulating fluid flow problems, including aerodynamics, thermal management and aeroacoustics, or wind noise. PowerFLOW uses its Digital Physics technology that enables it to predict fluid flows. PowerFLOW directly simulates unpredictable turbulent scales. The PowerFLOW software suite includes the simulation engine and grid generation engine, along with pre- and post-processing software products. The software is delivered in client/server architecture, or through its cloud-based offering, ExaCLOUD. With the ExaCLOUD solution, various client features and functions are accessed through a Web browser.

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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