SPS Commerce (SPSC) & Its Peers Head to Head Survey

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

Profitability

This table compares SPS Commerce and its peers’ 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%

Insider & 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares SPS Commerce and its peers top-line revenue, earnings per share 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 peers have higher revenue and earnings than SPS Commerce. SPS Commerce is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations for SPS Commerce and its peers, 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 currently 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 peers stronger consensus rating and higher probable upside, analysts clearly believe SPS Commerce has less favorable growth aspects than its peers.

Volatility & Risk

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

Summary

SPS Commerce peers 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.