Analyzing SPS Commerce (NASDAQ:SPSC) and SS&C Technologies (NASDAQ:SSNC)
SPS Commerce (NASDAQ:SPSC) and SS&C Technologies (NASDAQ:SSNC) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
This is a breakdown of current ratings and price targets for SPS Commerce and SS&C Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Risk & Volatility
SPS Commerce has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, SS&C Technologies has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.
Insider & Institutional Ownership
96.8% of SPS Commerce shares are held by institutional investors. Comparatively, 80.8% of SS&C Technologies shares are held by institutional investors. 3.3% of SPS Commerce shares are held by insiders. Comparatively, 14.5% of SS&C Technologies 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.
Earnings and Valuation
This table compares SPS Commerce and SS&C Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SPS Commerce||$279.12 million||5.14||$33.71 million||$0.99||41.55|
|SS&C Technologies||$4.63 billion||2.32||$438.50 million||$3.62||11.64|
SS&C Technologies has higher revenue and earnings than SPS Commerce. SS&C Technologies is trading at a lower price-to-earnings ratio than SPS Commerce, indicating that it is currently the more affordable of the two stocks.
This table compares SPS Commerce and SS&C Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
SS&C Technologies beats SPS Commerce on 9 of the 14 factors compared between the two stocks.
About SPS Commerce
SPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide. It offers solutions through the SPS Commerce platform, a cloud-based platform that enhances the way retailers, suppliers, grocers, distributors, and logistics firms manage and fulfill orders, administer sell-through performance, and source new items. The company offers Trading Partner Community solution, which enables retailers, grocers, and distributors to introduce changes to their supply chain requirements to their trading partner community, and onboard new vendors to receive their first orders; Trading Partner Fulfillment solution that provides fulfillment automation and replaces or augments an organization's existing staff and trading partner electronic communication infrastructure; and Trading Partner Assortment solution to manage individual attributes associated with each item a retailer or supplier sells. It also provides Trading Partner Analytics solution, which consists of data analytics applications that allow customers to enhance their visibility and analysis of their supply chains; Trading Partner Sourcing solutions that enables retailers to source providers of new items, suppliers to connect with new retailers, and retailing community; and Other Trading Partner Solutions, such as barcode labeling, planogram services, and scan and pack application that helps trading partners process information to streamline the picking and packaging process. The company sells its solutions through retailer, supplier, and logistic sales representatives to small- to mid-sized suppliers, as well as retailers, distributors, third-party logistics providers, and other trading partners. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
About SS&C Technologies
SS&C Technologies Holdings, Inc. provides software products and software-enabled services to financial services and healthcare industries in the United States, Canada, rest of the Americas, Europe, the Asia Pacific, and Japan. The company's products and services allow its clients to automate and integrate front-office functions, such as trading and modeling; middle-office functions, including portfolio management and reporting; and back-office functions comprising accounting, transfer agency, compliance, regulatory services, performance measurement, reconciliation, reporting, processing, and clearing. It provides solutions to clients in institutional asset and wealth management, alternative investment management, brokerage, retirement, financial advisory, and financial institutions vertical markets, commercial lenders, real estate investment trusts, corporate treasury groups, insurance companies, pension funds, municipal finance groups, and real estate property managers. The company also offers health care solutions, such as claims adjudication, benefit management, care management, and business intelligence services to health care industry that include pharmacy, healthcare administration, and health optimization solutions, as well as provides professional and products support services. SS&C Technologies Holdings, Inc. was founded in 1986 and is headquartered in Windsor, Connecticut.
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