SPS Commerce (NASDAQ:SPSC) vs. Ceridian HCM (NYSE:CDAY) Head to Head Analysis

Ceridian HCM (NYSE:CDAYGet Rating) and SPS Commerce (NASDAQ:SPSCGet Rating) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Insider & Institutional Ownership

99.1% of SPS Commerce shares are held by institutional investors. 4.0% of Ceridian HCM shares are held by company insiders. Comparatively, 1.3% of SPS Commerce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ceridian HCM and SPS Commerce, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ceridian HCM 1 4 8 0 2.54
SPS Commerce 0 0 2 0 3.00

Ceridian HCM presently has a consensus target price of $71.15, suggesting a potential upside of 9.00%. SPS Commerce has a consensus target price of $159.00, suggesting a potential upside of 23.07%. Given SPS Commerce’s stronger consensus rating and higher probable upside, analysts clearly believe SPS Commerce is more favorable than Ceridian HCM.

Risk & Volatility

Ceridian HCM has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ceridian HCM and SPS Commerce’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ceridian HCM $1.02 billion 9.67 -$75.40 million ($0.51) -128.00
SPS Commerce $385.28 million 12.09 $44.60 million $1.40 92.28

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

Profitability

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

Net Margins Return on Equity Return on Assets
Ceridian HCM -6.52% -2.39% -0.58%
SPS Commerce 12.04% 11.70% 9.31%

Summary

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

About Ceridian HCM

(Get Rating)

Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources (HR), payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides Bureau solutions for payroll and payroll-related services. It sells its solutions through direct sales force and third-party channels. The company was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

About SPS Commerce

(Get Rating)

SPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, suppliers, grocers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment solution that provides fulfillment automation and replaces or augments an organization's existing staff and trading partner electronic communication infrastructure by enabling easy compliance with retailers' rulebooks, automatic, and digital exchange of information among numerous trading partners through various protocols, and greater visibility into the journey of an order; and Analytics solution, which consists of data analytics applications that enables customers to enhance their visibility across supply chains through greater analytics capabilities. In addition, it offers various complimentary products, such as assortment product, which enables accurate order management and rapid fulfillment; and community product that accelerates vendor onboarding and ensures trading partner adoption of new supply chain requirements. 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.

Receive News & Ratings for Ceridian HCM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ceridian HCM and related companies with MarketBeat.com's FREE daily email newsletter.