Reviewing ChannelAdvisor Corporation (ECOM) and Model N (MODN)
ChannelAdvisor Corporation (NYSE: ECOM) and Model N (NYSE:MODN) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
81.1% of ChannelAdvisor Corporation shares are owned by institutional investors. Comparatively, 66.1% of Model N shares are owned by institutional investors. 11.3% of ChannelAdvisor Corporation shares are owned by insiders. Comparatively, 20.4% of Model N shares are owned by 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.
Volatility and Risk
ChannelAdvisor Corporation has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Model N has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
This table compares ChannelAdvisor Corporation and Model N’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for ChannelAdvisor Corporation and Model N, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ChannelAdvisor Corporation presently has a consensus target price of $18.00, suggesting a potential upside of 77.34%. Model N has a consensus target price of $13.67, suggesting a potential upside of 7.61%. Given ChannelAdvisor Corporation’s higher possible upside, equities research analysts plainly believe ChannelAdvisor Corporation is more favorable than Model N.
Valuation & Earnings
This table compares ChannelAdvisor Corporation and Model N’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ChannelAdvisor Corporation||$115.18 million||2.32||-$7.42 million||($0.35)||-29.00|
|Model N||$117.75 million||3.11||-$30.67 million||($1.30)||-9.77|
ChannelAdvisor Corporation has higher revenue, but lower earnings than Model N. ChannelAdvisor Corporation is trading at a lower price-to-earnings ratio than Model N, indicating that it is currently the more affordable of the two stocks.
ChannelAdvisor Corporation beats Model N on 7 of the 13 factors compared between the two stocks.
ChannelAdvisor Corporation Company Profile
Channeladvisor Corporation is a provider of Software as a service (SaaS) solutions. The Company’s SaaS solutions enable retailer and branded manufacturer customers to integrate, manage and optimize their merchandise sales via hundreds of online channels. The Company’s platform enable its customers to connect with new and existing sources of demand for their products, including e-commerce marketplaces, such as Amazon, eBay, Jet.com, Newegg, Sears and Walmart, search engines and comparison shopping Websites, such as Google, Microsoft’s Bing and Nextag, and social channels, such as Facebook, Instagram and Pinterest. Its suite of solutions provides customers with a single, integrated user interface to manage their product listings, inventory availability, pricing optimization, search terms, data analytics and other functions. It also offers solutions that allow manufacturers to send their Web visitors or digital marketing audiences directly to authorized resellers.
Model N Company Profile
Model N, Inc. is a provider of revenue management solutions for life science and technology companies. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process. The Company’s solutions include Revenue Enterprise Cloud, Revenue Intelligence Cloud and Revvy Revenue Management. The Company provides solutions that span the organizational and operational boundaries of functions, such as sales, marketing and finance, and serve as a system of record for revenue management processes, including pricing, contracts, rebates, incentives and regulatory compliance. The Company’s application suites are designed to work with enterprise resource planning (ERP) and customer relationship management (CRM) applications. The Company also offers implementation services, managed services, strategic services and customer support.
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