Financial Analysis: CoreCard (NYSE:CCRD) and Splunk (NASDAQ:SPLK)

CoreCard (NYSE:CCRDGet Rating) and Splunk (NASDAQ:SPLKGet Rating) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for CoreCard and Splunk, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreCard 0 0 1 0 3.00
Splunk 0 7 14 0 2.67

CoreCard currently has a consensus price target of $50.00, indicating a potential upside of 111.42%. Splunk has a consensus price target of $144.95, indicating a potential upside of 37.37%. Given CoreCard’s stronger consensus rating and higher possible upside, research analysts plainly believe CoreCard is more favorable than Splunk.

Volatility & Risk

CoreCard has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Splunk has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.

Insider & Institutional Ownership

49.6% of CoreCard shares are held by institutional investors. Comparatively, 91.6% of Splunk shares are held by institutional investors. 18.9% of CoreCard shares are held by company insiders. Comparatively, 0.3% of Splunk shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares CoreCard and Splunk’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoreCard 26.20% 37.81% 28.40%
Splunk -41.20% -396.11% -15.63%

Valuation & Earnings

This table compares CoreCard and Splunk’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoreCard $48.25 million 4.23 $9.04 million $1.91 12.38
Splunk $2.67 billion 6.35 -$1.34 billion ($7.26) -14.53

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

Summary

CoreCard beats Splunk on 9 of the 14 factors compared between the two stocks.

CoreCard Company Profile (Get Rating)

CoreCard Corporation, together with its subsidiaries, offers technology solutions and processing services to the financial technology and services market in the United States, European Union, and the Middle East. It designs, develops, and markets a suite of software solutions to program managers, accounts receivable businesses, financial institutions, retailers, and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs, and accounts receivable and loan transactions. The company's software solutions allow companies to offer various types of transacting account or card issuing program, as well as installment and revolving loans; set up and maintain account data; record advances and payments; assess fees, interests, and other charges; resolve disputes and chargebacks; manage collections of accounts receivable; generate reports; and settle transactions with financial institutions and network associations. The company was formerly known as Intelligent Systems Corporation and changed its name to CoreCard Corporation in December 2021. CoreCard Corporation was founded in 1973 and is headquartered in Norcross, Georgia.

Splunk Company Profile (Get Rating)

Splunk Inc., together with its subsidiaries, provides software and cloud solutions that deliver and operationalize insights from the data generated by digital systems in the United States and internationally. The company offers Splunk Platform, a real-time data platform comprising collection, streaming, indexing, search, reporting, analysis, machine learning, alerting, monitoring, and data management capabilities. It also provides Splunk Solutions, such as Splunk Security solutions that enable cybersecurity teams streamline the security operations workflow, accelerate threat detection and response, enhance threat visibility, and scale resources to increase analyst productivity through machine learning and automation; Splunk IT Solutions that provide IT Operations teams visibility and control across cloud and on-premises environments; and Splunk Observability Solutions for building and maintaining infrastructure and applications. In addition, the company offers Ecosystem Solutions, which includes pre-built data inputs, workflows, searches, reports, alerts, custom dashboards, flexible UI components, custom data visualizations, and integration actions and methods, as well as Splunk On-Call, Splunk Infrastructure Monitoring, and Splunk SOAR solutions, which provides APIs, SDKs, and other interfaces that enable its ecosystem, including third-party developers, partners, and customers to build content that configures and extends Splunk solutions to accommodate specific use cases. Further, the company provides adoption and implementation services, education services, and maintenance and customer support services. It sells its offerings directly through field and inside sales, and indirectly through various routes to market with various partners. Splunk Inc. was incorporated in 2003 and is headquartered in San Francisco, California.

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