SPS Commerce (NASDAQ: SPSC) is one of 182 public companies in the “Prepackaged software” industry, but how does it weigh in compared to its competitors? We will compare SPS Commerce to related companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, risk and dividends.
Volatility & Risk
SPS Commerce has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, SPS Commerce’s competitors have a beta of -17.32, suggesting that their average stock price is 1,832% less volatile than the S&P 500.
This table compares SPS Commerce and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SPS Commerce Competitors||-5.66%||-80.78%||-1.71%|
Earnings & Valuation
This table compares SPS Commerce and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|SPS Commerce||$220.57 million||-$2.44 million||154.98|
|SPS Commerce Competitors||$1.67 billion||$249.35 million||-0.27|
SPS Commerce’s competitors have higher revenue and earnings than SPS Commerce. SPS Commerce is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current ratings and price targets for SPS Commerce and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SPS Commerce Competitors||1063||5549||11523||447||2.61|
SPS Commerce currently has a consensus target price of $68.17, indicating a potential upside of 4.73%. As a group, “Prepackaged software” companies have a potential upside of 5.68%. Given SPS Commerce’s competitors higher probable upside, analysts clearly believe SPS Commerce has less favorable growth aspects than its competitors.
Insider and Institutional Ownership
99.4% of SPS Commerce shares are owned by institutional investors. Comparatively, 59.5% of shares of all “Prepackaged software” companies are owned by institutional investors. 3.6% of SPS Commerce shares are owned by company insiders. Comparatively, 22.0% of shares of all “Prepackaged software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
SPS Commerce beats its competitors on 8 of the 13 factors compared.
About SPS Commerce
SPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide. It provides solutions through the SPS Commerce platform, a cloud-based product suite that enhances the way retailers, suppliers, distributors, logistics firms, and other trading partners manage and fulfill orders, manage sell-through performance, and source new items. The company offers Trading Partner Fulfillment solution, which provides fulfillment automation and replaces or augments an organization's existing trading partner electronic communication infrastructure; Trading Partner Analytics solution that comprises data analytics applications to enhance visibility and analysis of customers supply chains; and Trading Partner Assortment solution to manage individual attributes associated with each item a retailer or supplier sells. It also provides Trading Partner Sourcing solution that enables retailers to source providers of new items, suppliers to connect with new retailers, and retailing community; Trading Partner Community Development solution, which offers communications programs that enables retailers, suppliers, and emerging providers of value-added products and services to establish trading partner relationships with new trading partners to expand their businesses; 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 primarily through retail sales professionals and supplier sales representatives to small- to mid-sized suppliers in the consumer packaged goods industry, 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.
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