Coupa Software (NASDAQ: COUP) and Amber Road (NYSE:AMBR) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Insider & Institutional Ownership

64.4% of Coupa Software shares are held by institutional investors. Comparatively, 69.3% of Amber Road shares are held by institutional investors. 32.1% of Coupa Software shares are held by insiders. Comparatively, 13.1% of Amber Road shares 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.

Analyst Ratings

This is a breakdown of current recommendations for Coupa Software and Amber Road, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coupa Software 0 4 7 0 2.64
Amber Road 0 0 3 0 3.00

Coupa Software presently has a consensus target price of $35.91, indicating a potential upside of 17.89%. Amber Road has a consensus target price of $12.33, indicating a potential upside of 53.02%. Given Amber Road’s stronger consensus rating and higher probable upside, analysts plainly believe Amber Road is more favorable than Coupa Software.

Profitability

This table compares Coupa Software and Amber Road’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coupa Software -24.40% -21.59% -13.60%
Amber Road -22.59% -53.03% -15.47%

Valuation and Earnings

This table compares Coupa Software and Amber Road’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Coupa Software $145.73 million 11.08 -$31.81 million N/A N/A
Amber Road $76.29 million 2.87 -$10.96 million ($0.63) -12.79

Amber Road has higher revenue, but lower earnings than Coupa Software.

Summary

Coupa Software beats Amber Road on 6 of the 11 factors compared between the two stocks.

Coupa Software Company Profile

Coupa Software Incorporated is a United States-based company, which provides a unified, cloud-based spend management platform that connects organizations with suppliers globally. The Company offers spend management cloud applications, which are pre-integrated. The platform offers consumerized financial applications. Its spend management suite includes procurement, invoicing, expenses, sourcing, inventory, contract lifecycle management, budgeting, analytics, open business network, supplier information management and storefront. The platform offers features, such as procure-to-pay solution; online invoice management, and inventory management and tracking software system. Its solutions for business needs include financial compliance and mobile productivity. The Company’s solutions for enterprise resource planning (ERP) include Oracle and NetSuite. The Company offers solutions for industries, including financial, healthcare, oil and gas, retail, technology, and food and beverage.

Amber Road Company Profile

Amber Road, Inc. is a provider of cloud-based global trade management (GTM) solutions. The Company’s GTM solutions include modules for logistics contract and rate management, supply chain visibility and event management, international trade compliance, and Global Knowledge trade content database to importers and exporters, non-vessel owning common carriers (resellers), and ocean carriers. The Company delivers its GTM solution using a software-as-a-service (SaaS) model. The Company’s solution automates the global supply chain across sourcing, logistics, cross-border trade and regulatory compliance activities. The Company’s GTM solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in approximately 145 countries, and a global supply chain network connecting its customers with the trading partners, including suppliers, freight forwarders, customs brokers and transportation carriers.

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