Head to Head Comparison: EverCommerce (NASDAQ:EVCM) & Vertex (NASDAQ:VERX)

Vertex (NASDAQ:VERX) and EverCommerce (NASDAQ:EVCM) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

70.3% of Vertex shares are owned by institutional investors. Comparatively, 97.9% of EverCommerce shares are owned by institutional investors. 42.3% of Vertex shares are owned by company insiders. Comparatively, 10.1% of EverCommerce shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex	1	7	7	0	2.40
EverCommerce	2	5	3	0	2.10

Vertex currently has a consensus target price of $17.50, suggesting a potential upside of 37.36%. EverCommerce has a consensus target price of $11.00, suggesting a potential upside of 17.40%. Given Vertex’s stronger consensus rating and higher possible upside, analysts plainly believe Vertex is more favorable than EverCommerce.

Risk & Volatility

Vertex has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, EverCommerce has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Profitability

This table compares Vertex and EverCommerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertex	0.45%	29.00%	5.96%
EverCommerce	5.69%	3.95%	2.06%

Valuation & Earnings

This table compares Vertex and EverCommerce”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertex	$748.44 million	2.76	$7.21 million	$0.02	637.00
EverCommerce	$588.91 million	2.81	$17.60 million	$0.18	52.06

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

Summary

Vertex beats EverCommerce on 8 of the 14 factors compared between the two stocks.

About Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

About EverCommerce

EverCommerce Inc., together with its subsidiaries, provides integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company’s solutions include business management software that offers route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions comprising e-invoicing, mobile payments, and integrated payment processing; customer experience solution, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, such as implementation, configuration, installation, or training services. It serves home service professionals, including home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. EverCommerce Inc. was incorporated in 2016 and is headquartered in Denver, Colorado.