SPS Commerce (NASDAQ:SPSC) vs. Primech (NASDAQ:PMEC) Head to Head Survey

Primech (NASDAQ:PMEC) and SPS Commerce (NASDAQ:SPSC) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Insider and Institutional Ownership

88.1% of Primech shares are owned by institutional investors. Comparatively, 99.0% of SPS Commerce shares are owned by institutional investors. 0.6% of SPS Commerce shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Primech and SPS Commerce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primech	1	0	0	0	1.00
SPS Commerce	1	7	2	1	2.27

SPS Commerce has a consensus price target of $76.45, indicating a potential upside of 36.28%. Given SPS Commerce’s stronger consensus rating and higher probable upside, analysts plainly believe SPS Commerce is more favorable than Primech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Primech	N/A	N/A	N/A
SPS Commerce	11.92%	12.43%	10.37%

Valuation & Earnings

This table compares Primech and SPS Commerce”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primech	$74.35 million	0.39	-$1.94 million	N/A	N/A
SPS Commerce	$751.51 million	2.74	$93.34 million	$2.40	23.38

SPS Commerce has higher revenue and earnings than Primech.

Risk and Volatility

Primech has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Summary

SPS Commerce beats Primech on 12 of the 13 factors compared between the two stocks.

About Primech

Primech Holdings Ltd. provides facilities and stewarding services in the public and private sectors in Singapore. Its facilities services include educational institutions cleaning, airport cleaning, and conservancy areas cleaning services, as well as offers cleaning of hotels, public spaces, roads, condominium, office, industrial, and retail stores. The company offers housekeeping services; specialized cleaning services, including marble polishing, building façade cleaning, and clean room sanitation services; and waste management and pest control services. In addition, it provides stewarding services comprising cleaning of the kitchen area of healthcare facilities, hotels, and restaurants, as well as supplies ad hoc customer service officers, and food and beverage service crews to healthcare facilities, hotels, and restaurants. Further, the company operates HomeHelpy, an online portal that allows individual customers to book cleaning services in homes and offices; and manufactures and sells cleaning supplies, such as hand soaps, hand soap dispensers, cleaning fluids, and garbage bags used for general, floor, carpet, restroom, or kitchen purposes, as well as treatment products used in the marine industry under the D’Bond brand name. The company was incorporated in 2020 and is based in Singapore. Primech Holdings Ltd. is a subsidiary of Sapphire Universe Holdings Limited.

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.