SPS Commerce (SPSC) & The Competition Financial Survey

SPS Commerce (NASDAQ:SPSC) is one of 959 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare SPS Commerce to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations for SPS Commerce and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	1	7	2	0	2.10
SPS Commerce Competitors	5842	21623	45021	1501	2.57

SPS Commerce presently has a consensus target price of $79.33, suggesting a potential downside of 2.42%. As a group, “Software” companies have a potential upside of 28.77%. Given SPS Commerce’s competitors stronger consensus rating and higher possible upside, analysts clearly believe SPS Commerce has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

99.0% of SPS Commerce shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 0.6% of SPS Commerce shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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	10.65%	13.72%	11.38%
SPS Commerce Competitors	-596.15%	26.13%	-8.98%

Volatility and Risk

SPS Commerce has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, SPS Commerce’s competitors have a beta of 1.35, indicating that their average share price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares SPS Commerce and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SPS Commerce	$751.51 million	$93.34 million	36.13
SPS Commerce Competitors	$1.79 billion	$382.69 million	111.80

SPS Commerce’s competitors have higher revenue and earnings than SPS Commerce. SPS Commerce is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

SPS Commerce competitors beat SPS Commerce on 10 of the 13 factors compared.

SPS Commerce Company Profile

SPS Commerce provides cloud-based supply chain management software and services, with a focus on helping retailers, suppliers, distributors and logistics providers exchange business information and coordinate transactions. Its platform connects trading partners and supports electronic data interchange (EDI), order processing and fulfillment workflows. The company also offers tools for supply chain analytics and product information management, along with implementation and ongoing support services.