Critical Review: CommerceHub (CHUBA) versus MobileIron (MOBL)

CommerceHub (NASDAQ: CHUBA) and MobileIron (NASDAQ:MOBL) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for CommerceHub and MobileIron, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CommerceHub 0 1 3 0 2.75
MobileIron 1 1 4 0 2.50

CommerceHub currently has a consensus target price of $26.00, indicating a potential upside of 13.09%. MobileIron has a consensus target price of $5.67, indicating a potential upside of 43.46%. Given MobileIron’s higher possible upside, analysts plainly believe MobileIron is more favorable than CommerceHub.

Earnings and Valuation

This table compares CommerceHub and MobileIron’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CommerceHub $105.14 million 9.46 $24.66 million $0.26 88.43
MobileIron $171.98 million 1.71 -$50.14 million ($0.63) -6.27

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

Profitability

This table compares CommerceHub and MobileIron’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CommerceHub 10.81% 36.84% 15.62%
MobileIron -32.67% -136.81% -35.21%

Insider and Institutional Ownership

25.6% of CommerceHub shares are owned by institutional investors. Comparatively, 54.9% of MobileIron shares are owned by institutional investors. 31.7% of MobileIron shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

CommerceHub beats MobileIron on 7 of the 12 factors compared between the two stocks.

About CommerceHub

CommerceHub, Inc. is a provider of cloud-based e-commerce fulfillment and marketing solutions that integrate supply, demand and delivery for retailers and consumer brands, manufacturers and distributors. The Company’s end-to-end solutions are provided through the CommerceHub software platform, a hub that streamlines integration and enables transactions among its retailer and supplier customers and their other trading partners, while also enabling them to access the online marketplaces, search engines, social and product advertising and other digital marketing channels where consumers browse and buy. Its solutions also help its customers integrate with the third-party logistics (3PL) providers, including fulfillment and delivery providers that take purchased products to the consumer’s doorstep. The Company’s solutions include Supply Solutions, Demand Solutions and Delivery Solutions.

About MobileIron

MobileIron, Inc. (MobileIron) provides a mobile information technology (IT) platform for enterprises to manage and secure mobile applications, content and devices. The Company’s solution provides enterprise security. The MobileIron Platform combines security and enterprise mobility management (EMM) tools, including mobile device management (MDM), mobile application management (MAM), and mobile content management (MCM) capabilities. The Company offers EMM tools, including EMM platform, cloud security with MobileIron Access, Windows security with MobileIron Bridge and applications. MobileIron offers its customers the flexibility to deploy its solution as a cloud service or as on-premises software. Its applications include [email protected], [email protected], [email protected], [email protected], MobileIron Tunnel, MobileIron Rooms, MobileIron AppConnect and AppConnect Ecosystem. The Company serves a range of industries, such as financial services, government, healthcare and legal.

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