Contrasting Cornerstone OnDemand (NASDAQ:CSOD) and Unity Software (NYSE:U)


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Cornerstone OnDemand (NASDAQ:CSOD) and Unity Software (NYSE:U) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

79.9% of Cornerstone OnDemand shares are held by institutional investors. Comparatively, 61.9% of Unity Software shares are held by institutional investors. 7.2% of Cornerstone OnDemand shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Cornerstone OnDemand and Unity Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cornerstone OnDemand -4.70% 51.19% 6.97%
Unity Software N/A N/A N/A

Valuation and Earnings

This table compares Cornerstone OnDemand and Unity Software’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cornerstone OnDemand $576.52 million 5.02 -$4.05 million $1.17 37.99
Unity Software N/A N/A N/A N/A N/A

Unity Software has lower revenue, but higher earnings than Cornerstone OnDemand.

Analyst Recommendations

This is a summary of current ratings and price targets for Cornerstone OnDemand and Unity Software, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cornerstone OnDemand 1 3 3 0 2.29
Unity Software 1 3 8 0 2.58

Cornerstone OnDemand presently has a consensus target price of $55.67, suggesting a potential upside of 25.23%. Unity Software has a consensus target price of $126.30, suggesting a potential upside of 29.02%. Given Unity Software’s stronger consensus rating and higher probable upside, analysts clearly believe Unity Software is more favorable than Cornerstone OnDemand.

Summary

Cornerstone OnDemand beats Unity Software on 5 of the 9 factors compared between the two stocks.

Cornerstone OnDemand Company Profile

Cornerstone OnDemand, Inc., together with its subsidiaries, provides learning and people development solutions as software-as-a-service worldwide. Its enterprise people development solutions comprise learning solutions, which provide learning management software to scale with the organization and support compliance, knowledge sharing, and employee-driven development training to close skills gaps; content solution, which provides learning content from its own studios and various quality partners; performance solutions, which provide tools to manage goal setting, performance reviews, competency assessments, compensation management, and succession planning; careers solution, which helps employees understand how to get from their current position to future strategic roles with continuous feedback, goal setting, development plans, career exploration, and engagement survey tools; recruiting solutions, which help organizations to attract, hire, and onboard the right employees; and HR solution, which provides an aggregated view of employee data with workforce planning, self-service management, and compliance reporting capabilities. The company also offers professional services, including application configuration, system integration, business process re-engineering, change management, and training. Cornerstone OnDemand, Inc. sells its software, content, and services directly through its sales force and indirectly through its domestic and international network of distributors. It serves business services, financial services, healthcare, pharmaceuticals, insurance, manufacturing, retail, and technology industries. Cornerstone OnDemand, Inc. was incorporated in 1999 and is headquartered in Santa Monica, California.

Unity Software Company Profile

Unity Software Inc. operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide. The company was founded in 2004 and is headquartered in San Francisco, California.

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