Cornerstone OnDemand (CSOD) versus Incontact (SAAS) Critical Contrast

Cornerstone OnDemand (NASDAQ: CSOD) and Incontact (NASDAQ:SAAS) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Valuation & Earnings

This table compares Cornerstone OnDemand and Incontact’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cornerstone OnDemand $445.02 million 4.96 -$45.49 million ($1.21) -31.70
Incontact N/A N/A N/A ($0.31) -45.13

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

Profitability

This table compares Cornerstone OnDemand and Incontact’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cornerstone OnDemand -15.39% -182.51% -8.45%
Incontact -10.24% -22.75% -10.27%

Institutional and Insider Ownership

91.7% of Cornerstone OnDemand shares are held by institutional investors. Comparatively, 93.5% of Incontact shares are held by institutional investors. 12.6% of Cornerstone OnDemand shares are held by company insiders. Comparatively, 6.3% of Incontact shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Cornerstone OnDemand has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Incontact has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Cornerstone OnDemand and Incontact, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cornerstone OnDemand 2 4 5 1 2.42
Incontact 0 1 0 0 2.00

Cornerstone OnDemand presently has a consensus target price of $43.45, indicating a potential upside of 13.28%. Incontact has a consensus target price of $14.00, indicating a potential upside of 0.07%. Given Cornerstone OnDemand’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Cornerstone OnDemand is more favorable than Incontact.

Summary

Cornerstone OnDemand beats Incontact on 7 of the 12 factors compared between the two stocks.

Cornerstone OnDemand Company Profile

Cornerstone OnDemand, Inc. is a cloud computing company. The Company provides learning and human capital management software, delivered as Software-as-a-Service (SaaS). Its human capital management platform combines the talent management solutions with analytics and human resources (HR) administration solutions to enable organizations to manage the employee lifecycle. Its enterprise human capital management platform consists of four product suites: its Recruiting suite, which helps organizations to source and attract candidates, assess and select applicants, onboard new hires and manage the entire recruiting process; its Learning suite, which enables clients to manage training and development programs; its Performance suite, which provides tools to manage goal setting, performance reviews, compensation management and succession planning, and HR Administration suite, which supports employee records administration, workforce planning and compliance reporting.

Incontact Company Profile

inContact, Inc. (inContact) is a provider of cloud contact center software solutions. The Company provides a range of cloud contact center call routing, self-service and agent optimization solutions. The Company operates through two business segments: Software and Network connectivity. inContact’s Software segment includes the services related to the delivery of its cloud contact center software solutions. Its Network connectivity segment includes the voice and data long distance services provided to customers. It offers its products and services to its customers in approximately five vertical markets, such as customer services and sales business process outsourcers (BPOs), retail and direct response, healthcare providers, utilities, and state and local Government. It provides software, which includes Automatic call distributing, Computer telephony integration, Interactive voice response with speech recognition, Outbound dialer, Screen recording and Interactive reporting tool.

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