SharpSpring (NASDAQ:SHSP) and Ceridian HCM (NYSE:CDAY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Insider & Institutional Ownership

50.1% of SharpSpring shares are owned by institutional investors. Comparatively, 81.3% of Ceridian HCM shares are owned by institutional investors. 25.6% of SharpSpring shares are owned by insiders. Comparatively, 26.9% of Ceridian HCM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares SharpSpring and Ceridian HCM’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SharpSpring $18.65 million 5.23 -$9.48 million ($1.11) -8.03
Ceridian HCM $746.40 million 8.70 -$63.40 million ($0.05) -907.60

SharpSpring has higher earnings, but lower revenue than Ceridian HCM. Ceridian HCM is trading at a lower price-to-earnings ratio than SharpSpring, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for SharpSpring and Ceridian HCM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SharpSpring 0 0 6 0 3.00
Ceridian HCM 0 5 7 0 2.58

SharpSpring currently has a consensus target price of $17.33, indicating a potential upside of 94.54%. Ceridian HCM has a consensus target price of $57.09, indicating a potential upside of 25.81%. Given SharpSpring’s stronger consensus rating and higher possible upside, research analysts plainly believe SharpSpring is more favorable than Ceridian HCM.

Volatility and Risk

SharpSpring has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Ceridian HCM has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Profitability

This table compares SharpSpring and Ceridian HCM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SharpSpring -57.95% -51.86% -32.33%
Ceridian HCM 4.19% 2.34% 0.61%

Summary

Ceridian HCM beats SharpSpring on 10 of the 14 factors compared between the two stocks.

SharpSpring Company Profile

SharpSpring, Inc. operates as a cloud-based marketing technology company worldwide. The company offers SharpSpring, a marketing automation solution for small and mid-size businesses. It markets and sells its products and services through sales teams and third party resellers. The company was formerly known as SMTP, Inc. and changed its name to SharpSpring, Inc. in December 2015. SharpSpring, Inc. was founded in 1998 and is headquartered in Gainesville, Florida.

Ceridian HCM Company Profile

Ceridian HCM Holding Inc. operates as a human capital management (HCM) software company in the United States and internationally. The company offers Dayforce, a cloud HCM platform that provides human resources (HR), payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud platform, which offers scalable and straightforward payroll and HR solutions. It also provides Bureau solutions for payroll and payroll-related services. Ceridian HCM Holding Inc. was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

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