Brookfield Business Partners (NYSE:BBU) versus SPS Commerce (NASDAQ:SPSC) Head to Head Analysis

Brookfield Business Partners (NYSE:BBU) and SPS Commerce (NASDAQ:SPSC) are both mid-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Valuation & Earnings

This table compares Brookfield Business Partners 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
Brookfield Business Partners	$27.46 billion	0.10	-$26.00 million	($0.26)	-121.00
SPS Commerce	$751.51 million	2.83	$93.34 million	$2.45	23.52

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

Risk & Volatility

Brookfield Business Partners has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Brookfield Business Partners and SPS Commerce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Business Partners	2	0	6	0	2.50
SPS Commerce	1	8	2	1	2.25

Brookfield Business Partners currently has a consensus target price of $43.00, indicating a potential upside of 36.68%. SPS Commerce has a consensus target price of $84.91, indicating a potential upside of 47.36%. Given SPS Commerce’s higher probable upside, analysts plainly believe SPS Commerce is more favorable than Brookfield Business Partners.

Insider & Institutional Ownership

85.0% of Brookfield Business Partners shares are owned by institutional investors. Comparatively, 99.0% of SPS Commerce shares are owned by institutional investors. 1.0% of SPS Commerce shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Brookfield Business Partners and SPS Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Business Partners	1.41%	2.67%	0.51%
SPS Commerce	12.42%	12.73%	10.62%

Summary

SPS Commerce beats Brookfield Business Partners on 11 of the 15 factors compared between the two stocks.

About Brookfield Business Partners

Brookfield Business Partners L.P. is a private equity firm specializing in acquisition. The firm typically invests in business services, infrastructure services, construction, energy, and industrials sector. It prefers to take majority stake in companies. The firm seeks returns of at least 15% on its investments. Brookfield Business Partners L.P. was founded in 2016 and is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Corporation.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. 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.