Analyzing Manhattan Associates (NASDAQ:MANH) & SoundThinking (NASDAQ:SSTI)

SoundThinking (NASDAQ:SSTI) and Manhattan Associates (NASDAQ:MANH) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

60.7% of SoundThinking shares are owned by institutional investors. Comparatively, 98.5% of Manhattan Associates shares are owned by institutional investors. 10.9% of SoundThinking shares are owned by insiders. Comparatively, 0.8% of Manhattan Associates shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SoundThinking and Manhattan Associates, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundThinking	1	8	0	0	1.89
Manhattan Associates	0	2	8	0	2.80

SoundThinking presently has a consensus price target of $9.79, suggesting a potential upside of 17.96%. Manhattan Associates has a consensus price target of $261.11, suggesting a potential upside of 1.60%. Given SoundThinking’s higher possible upside, equities research analysts clearly believe SoundThinking is more favorable than Manhattan Associates.

Risk & Volatility

SoundThinking has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Manhattan Associates has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Earnings & Valuation

This table compares SoundThinking and Manhattan Associates”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoundThinking	$97.96 million	1.10	-$9.42 million	($1.29)	-6.43
Manhattan Associates	$1.08 billion	13.80	$219.95 million	$3.57	71.99

Manhattan Associates has higher revenue and earnings than SoundThinking. SoundThinking is trading at a lower price-to-earnings ratio than Manhattan Associates, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SoundThinking and Manhattan Associates’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoundThinking	-16.92%	-23.77%	-12.90%
Manhattan Associates	18.41%	98.67%	28.60%

Summary

Manhattan Associates beats SoundThinking on 11 of the 14 factors compared between the two stocks.

About SoundThinking

SoundThinking, Inc. is a public safety technology company that provides data-driven tools to help law enforcement and other public safety organizations detect, analyze and respond to crime. The company’s platform combines acoustic sensors, artificial intelligence, data analytics and investigative software to support emergency response, investigations and resource allocation. Its flagship ShotSpotter service uses a network of acoustic sensors and machine-learning technology to detect, locate and analyze suspected gunfire, helping agencies identify incidents that may not be reported through emergency calls.

About Manhattan Associates

Manhattan Associates (NASDAQ: MANH) develops software and provides services that help businesses manage supply chains, inventory and commerce operations. Its solutions support activities such as warehouse and transportation management, order fulfillment, labor management and coordination of sales across online and physical channels. The company’s product portfolio includes Manhattan Active, a cloud-native platform designed to connect supply chain and omnichannel commerce functions. Manhattan Associates serves organizations across industries including retail, manufacturing, wholesale distribution and consumer goods, with customers and operations in markets around the world.