Head to Head Analysis: CDK Global (NASDAQ:CDK) vs. PFSweb (NASDAQ:PFSW)
CDK Global (NASDAQ:CDK) and PFSweb (NASDAQ:PFSW) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Insider & Institutional Ownership
82.7% of CDK Global shares are owned by institutional investors. Comparatively, 57.7% of PFSweb shares are owned by institutional investors. 0.5% of CDK Global shares are owned by company insiders. Comparatively, 6.5% of PFSweb shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current recommendations for CDK Global and PFSweb, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CDK Global currently has a consensus price target of $69.67, indicating a potential upside of 43.38%. PFSweb has a consensus price target of $10.33, indicating a potential upside of 174.09%. Given PFSweb’s stronger consensus rating and higher possible upside, analysts plainly believe PFSweb is more favorable than CDK Global.
Risk & Volatility
CDK Global has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, PFSweb has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.
This table compares CDK Global and PFSweb’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CDK Global pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. PFSweb does not pay a dividend. CDK Global pays out 19.7% of its earnings in the form of a dividend. CDK Global has raised its dividend for 4 consecutive years.
Valuation and Earnings
This table compares CDK Global and PFSweb’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CDK Global||$2.27 billion||2.60||$380.80 million||$3.04||15.98|
|PFSweb||$326.16 million||0.22||$1.23 million||N/A||N/A|
CDK Global has higher revenue and earnings than PFSweb.
CDK Global beats PFSweb on 10 of the 16 factors compared between the two stocks.
CDK Global Company Profile
CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States and internationally. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles. It also provides solutions to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. In addition, the company offers advertising solutions, such as the management of digital advertising spend for automotive retailers, automotive retailer associations, and OEMs; and professional services, custom programming, consulting, implementation, and training solutions, as well as customer support solutions. It serves approximately 28,000 retail locations and OEMs. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.
PFSweb Company Profile
PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India. It operates through two segments, LiveArea Professional Services and PFS Operations. The company offers strategic commerce consulting services, including commerce strategy, omni-channel consulting, digital opportunity audit, organizational/operational readiness, and platform evaluation/selection services; and design and digital marketing services, such as design, user experience, interactive development, search engine optimization and paid search, affiliate marketing, conversion optimization, storefront management, email marketing, and digital analytics. It also provides technology services comprising commerce development, managed, quality assurance, and training services; and order to cash service, such as technology collaboration, information management services, payments, business-to-business financial management, and direct-to-consumer financial management. In addition, the company offers fulfillment services, including distribution facilities and infrastructure, facility operations and management, pop-up distribution centers, and kitting and assembly services; and customer care services comprising customer service application, customer assistance, quality monitoring, and customer self-help. It serves clients in various industries, such as fashion apparel and accessories, fragrance and beauty products, consumer packaged goods, home furnishings and housewares, coins and collectibles, and technology products. The company was founded in 1999 and is headquartered in Allen, Texas.
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