Speed Commerce (OTCMKTS:SPDC) and ePlus (NASDAQ:PLUS) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Insider and Institutional Ownership
89.3% of ePlus shares are owned by institutional investors. 1.2% of Speed Commerce shares are owned by insiders. Comparatively, 2.7% of ePlus shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Speed Commerce and ePlus’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ePlus||$1.41 billion||0.79||$55.12 million||$4.22||19.37|
ePlus has higher revenue and earnings than Speed Commerce.
Risk and Volatility
Speed Commerce has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, ePlus has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.
This is a breakdown of current ratings for Speed Commerce and ePlus, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ePlus has a consensus price target of $94.00, suggesting a potential upside of 14.98%. Given ePlus’ higher possible upside, analysts plainly believe ePlus is more favorable than Speed Commerce.
This table compares Speed Commerce and ePlus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ePlus beats Speed Commerce on 9 of the 9 factors compared between the two stocks.
About Speed Commerce
Speed Commerce, Inc. provides end-to-end e-commerce services to retailers and manufacturers. It also provides web platform development and hosting, order management, fulfillment, logistics and contact center services which provide clients with easy-to-implement, cost-effective, transaction-based services, and information management tools. The company was founded in 1983 and is headquartered in Richardson, TX.
ePlus inc., through its subsidiaries, provides information technology solutions that enable organizations to optimize their information technology (IT) environment and supply chain processes in the United States. It operates in two segments, Technology and Financing. The Technology segment offers hardware, software, maintenance, software assurance, and internally-provided and outsourced services; and advanced professional and managed services, including ePlus managed, professional, security, staff augmentation, server and desktop support, and project management services. It also provides proprietary software products, such as OneSource IT, an online Web based software portal for customers purchasing IT equipment, software, and services; OneSource Procurement, a Web-based software tool to facilitate procurement of various assets; OneSource Asset Management, a software platform for managing and tracking corporate assets comprising vendor maintenance contracts; and OneSource DigitalPaper, a document management software application. The Financing segment specializes in financing arrangements that include direct financing, sales-type, and operating leases; notes receivable and consumption-based financing arrangements; and underwriting and management of IT equipment and assets. Its financing operations comprise sales, pricing, credit, contracts, accounting, risk management, and asset management. This segment primarily finances IT equipment, including accessories and software, communication-related equipment, and medical equipment; and industrial machinery, office furniture and general office, transportation, and other general business equipment directly, as well as through vendors. ePlus inc. serves commercial entities, state and local governments, government contractors, and educational institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus inc. was founded in 1990 and is headquartered in Herndon, Virginia.
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