Financial Analysis: CDK Global (CDK) versus MAM Software Group (MAMS)
CDK Global (NASDAQ: CDK) and MAM Software Group (NASDAQ:MAMS) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
This is a summary of current ratings for CDK Global and MAM Software Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MAM Software Group||0||1||0||0||2.00|
CDK Global presently has a consensus price target of $72.33, indicating a potential upside of 11.44%. MAM Software Group has a consensus price target of $8.00, indicating a potential upside of 3.36%. Given CDK Global’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CDK Global is more favorable than MAM Software Group.
Earnings and Valuation
This table compares CDK Global and MAM Software Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CDK Global||$2.22 billion||4.10||$582.40 million||$2.00||32.46|
|MAM Software Group||$31.72 million||3.01||$4.32 million||$0.39||19.85|
CDK Global has higher revenue and earnings than MAM Software Group. MAM Software Group is trading at a lower price-to-earnings ratio than CDK Global, indicating that it is currently the more affordable of the two stocks.
This table compares CDK Global and MAM Software Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MAM Software Group||14.49%||51.17%||15.36%|
Institutional and Insider Ownership
85.2% of CDK Global shares are held by institutional investors. Comparatively, 31.0% of MAM Software Group shares are held by institutional investors. 0.4% of CDK Global shares are held by company insiders. Comparatively, 39.6% of MAM Software Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
CDK Global pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. MAM Software Group does not pay a dividend. CDK Global pays out 28.0% of its earnings in the form of a dividend.
Risk & Volatility
CDK Global has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, MAM Software Group has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.
CDK Global beats MAM Software Group on 12 of the 16 factors compared between the two stocks.
About CDK Global
CDK Global, Inc. provides integrated information technology and digital marketing solutions. The Company’s segments include Retail Solutions North America, Advertising North America and CDK International. Through its Retail Solutions North America segment, the Company provides technology-based solutions, including automotive Website platforms, that help automotive retailers, original equipment manufacturers (OEMs) and other industry participants manage the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles. Through its Advertising North America segment, the Company provides advertising solutions, including management of digital advertising spend, for OEMs and automotive retailers. As of June 30, 2016, through its CDK International segment, it provided technology-based solutions similar to the retail solutions provided in its Retail Solutions North America segment in approximately 100 countries outside of the United States and Canada.
About MAM Software Group
MAM Software Group, Inc. (MAM) is a technology holding company. The Company is a provider of cloud-based business and on premise management solutions for the auto parts, tires and vertical distribution industries. Its segments include MAM UK and MAM NA. It operates through three subsidiaries: MAM Software, Inc. (MAM NA), MAM Software Limited (MAM Ltd.) and Origin Software Solutions Ltd. (Origin) (MAM Ltd. and Origin are collectively referred to as MAM UK). The Company provides software, information and related services to businesses engaged in the automotive aftermarket in the United States, Canada, the United Kingdom and Ireland. In the United Kingdom Market, it also provides management solutions to businesses involved in the wholesale of construction materials. Its products and services include business management systems, information products, online services, and customer support and consulting and training.
Receive News & Stock Ratings for CDK Global Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CDK Global Inc. and related stocks with our FREE daily email newsletter.