Critical Analysis: CommerceHub (CHUBK) versus The Competition

CommerceHub (NASDAQ: CHUBK) is one of 111 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare CommerceHub to similar businesses based on the strength of its risk, profitability, earnings, dividends, institutional ownership, valuation and analyst recommendations.

Volatility and Risk

CommerceHub has a beta of -0.84, suggesting that its share price is 184% less volatile than the S&P 500. Comparatively, CommerceHub’s rivals have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares CommerceHub and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CommerceHub $100.55 million N/A 62.89
CommerceHub Competitors $2.24 billion $407.74 million 358.11

CommerceHub’s rivals have higher revenue and earnings than CommerceHub. CommerceHub is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

49.4% of CommerceHub shares are held by institutional investors. Comparatively, 58.0% of shares of all “Software” companies are held by institutional investors. 17.4% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares CommerceHub and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CommerceHub N/A N/A N/A
CommerceHub Competitors -57.33% -26.75% -8.53%

Analyst Ratings

This is a breakdown of current ratings for CommerceHub and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CommerceHub 0 0 0 0 N/A
CommerceHub Competitors 360 2266 4718 96 2.61

As a group, “Software” companies have a potential upside of 20.40%. Given CommerceHub’s rivals higher possible upside, analysts clearly believe CommerceHub has less favorable growth aspects than its rivals.

Summary

CommerceHub rivals beat CommerceHub on 6 of the 9 factors compared.

CommerceHub Company Profile

CommerceHub, Inc. is a provider of cloud-based e-commerce fulfillment and marketing solutions that integrate supply, demand and delivery for retailers and consumer brands, manufacturers and distributors. The Company’s end-to-end solutions are provided through the CommerceHub software platform, a hub that streamlines integration and enables transactions among its retailer and supplier customers and their other trading partners, while also enabling them to access the online marketplaces, search engines, social and product advertising and other digital marketing channels where consumers browse and buy. Its solutions also help its customers integrate with the third-party logistics (3PL) providers, including fulfillment and delivery providers that take purchased products to the consumer’s doorstep. The Company’s solutions include Supply Solutions, Demand Solutions and Delivery Solutions.

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